Tishman acquires Chicago office for $385m

Tishman Speyer has acquired the Chicago headquarters of Mesirow Financial for $385 million – less than what the office property cost to build.

The New York-based firm confirmed it had acquired 353 North Clark Street, located in the city’s River North area, but it declined to comment on financial details. However, industry professionals said Tishman paid $385 million for the 46-storey property, which was purchased through its $1.05 billion opportunity fund, Tishman Speyer Real Estate Venture VII.

For Mesirow Financial, the deal marks a loss on its investment with the sale price just covering the 1.2 million-square-foot property’s first mortgage. Mesirow acquired the development site of 353 North Clark in November 2006 for an estimated $20 million, according to data provider Real Capital Analytics, with plans to build a $442 million headquarters. Failed German lender Hypo Real Estate financed the project with a $353 million first mortgage.

According to Crain’s, the sale by Mesirow was forced by maturing construction loans. The property, which opened one year ago, currently is 79 percent leased, with broker Jones Lang LaSalle saying in a statement that “Tishman capitalised on [a] rare opportunity”.

Although Tishman has spent part of 2010 working with its own lenders to modify chunks of its debt load, the firm also has been actively acquiring office properties year for its opportunity vehicles. In November, Tishman purchased the 305,000-square-foot office property at 1110 Vermont Avenue NW in Washington, DC, for an estimated $130 million. The office, sold by a partnership between GMAC Institutional Advisors and PRP, formerly known as Perseus Realty Partners, was 83 percent leased at the time of the acquisition.