225 W. Wacker Building Up for Sale

October 28, 2012

downtown chicago real estate for sale The 31-story office building at 225. W. Wacker will be going up for sale. Kaplan Higher Education, one of the largest tenants of the building, is moving out. The loss of Kaplan is what prompted the owner of 224 W. Wacker to put the building on the market.

Many downtown Chicago real estate deals have been taking place in recent months, due to low interest rates, a stronger leasing market and strong investor interest. The largest downtown Chicago sale in 2012 was the sale of the tower at 540 W. Madison St., which sold for $345 million.

Kaplan isn’t actually moving out until 2022, when their lease expires, so investors will have several years to figure out how to fill the vacancy. Since the for-profit higher education industry hasn’t been strong as of late, the loss of Kaplan could actually be good for the building. Potential investors could lure a company willing to pay to higher rent than Kaplan’s current rate.

The tower is currently 91 percent leased and bids for Kaplan’s space could total $270 per square foot or $175 million.

Chicago downtown office vacancy is now at 14.8 percent, a decrease from the mid-2010 high of 17.3 percent.

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