Ivanhoé Cambridge, the real estate arm of the Caisse de dépôt et placement du Québec, has acquired two office buildings in Chicago’s West Loop district for a total investment of just over $360 million. The acquisition will add more than 1.4 million square feet to the firm’s portfolio in the city.
The twin, 21-story buildings, located at 10 and 120 South Riverside Plaza, both have received LEED Gold certification. Situated on the west bank of the Chicago River, the properties boast close proximity to the two busiest commuter rail hubs in the city’s business district.
“Chicago is one of the key US cities on which we’ve set our sights in order to build a national high-quality office property platform,” explained Adam Adamakakis, executive vice president of US investments at Ivanhoé Cambridge, in a statement. “This successful transaction proves one more time how effective our partnership with Callahan Capital Properties can be in one of the most competitive real estate markets in the US.”
The transaction marks Ivanhoé Cambridge’s fourth acquisition made as part of its strategic relationship with Chicago-based Callahan. In a partnership established late last year, the real estate investment firm sources investment opportunities for and offers asset management services to the Canadian institution. Callahan, which is not an investor in the deal, will manage the assets along with the other US properties acquired by Ivanhoé Cambridge over the past 12 months, including 1411 Broadway and 1211 Avenue of the Americas in New York and the Wells Fargo Center in Seattle.
This transaction is not Ivanhoé Cambridge’s first venture in Chicago’s West Loop neighborhood. In May 2012, the Canadian investor and Houston-based Hines announced the development of the largest real estate project in Chicago in the last five years, River Point. Ivanhoé Cambridge kicked in $300 million, while Hine provided an additional $100 million for the project, which calls for a 45-story tower and the construction of a 1.5-acre public park atop existing rail infrastructure. The River Point tower, which is scheduled for completion in 2016, will contain approximately 900,000 square feet of leasable space and has landed law firm McDermott Will & Emery as its anchor tenant.