KKR has agreed to acquire a Chicago mixed-use building for $260 million.
The New York-based private equity real estate shop is making its first purchase in Chicago’s central business district with the acquisition of the Sullivan Center at 1 South State Street, according to real estate data provider Real Capital Analytics (RCA). KKR plans to close on the deal by the end of June, according to media reports.
The 942,000 square foot building was 87 percent occupied as of January, with 740,000 feet of office space and retail tenants that include Target, shoe store DSW and two restaurants, according to RCA.
KKR picked up the building from a joint venture comprising Boston’s Winthrop Realty; Toronto’s Elad Canada; and local developer Joseph Freed & Associates. Winthrop and Elad Canada bought a 76 percent interest in the property in 2012 after Freed defaulted on a $147.2 million loan in a transaction that valued the building at $168 million.
KKR could not be reached for comment.