{"id":3879,"date":"2025-01-10T05:40:45","date_gmt":"2025-01-10T05:40:45","guid":{"rendered":"https:\/\/www.commercialsearch.com\/blog\/?p=3879"},"modified":"2025-11-12T11:48:10","modified_gmt":"2025-11-12T11:48:10","slug":"chicago-skyscraper-sells-for-85m-amid-market-discounts","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/blog\/chicago-skyscraper-sells-for-85m-amid-market-discounts\/","title":{"rendered":"Chicago Skyscraper Sells for $85M Amid Market Discounts"},"content":{"rendered":"

On Dec. 30, Namdar Realty Group and Mason Asset Management acquired the 57-story office tower at 70 W. Madison St. in Chicago for $85 million. Spanning 1.44 million square feet, the building ranks among the largest recent acquisitions in the city. The $61-per-square-foot sale price also falls well below the $97-per-square-foot average for Chicago office properties through November 2024, according to CommercialCafe\u2019s recent office report<\/a>.<\/p>\n

The transaction highlights a sharp decline from the building\u2019s 2014 valuation of $374.6 million. Financial difficulties, including a missed loan payment that led to foreclosure proceedings by Bank of America, preceded the sale. The property was sold by a group including Hearn, GEM Realty Capital and Farallon Capital Management. Igal Namdar and Elliot Nassim represented the buyers.<\/p>\n

\"70<\/p>\n

70 W. Madison St., Chicago, IL<\/em><\/p>\n

This deal exemplifies the ongoing trend of discounted office sales in Chicago and nationwide. Across the U.S., office properties averaged $179 per square foot in 2024 \u2014 down 9% from 2023 and \u00a0-24% from 2022. By November, 480 discounted transactions accounted for more than one-quarter of all office sales nationwide, surpassing the 389 recorded in 2023.<\/p>\n

Chicago Sees Bigger Office Deals in 2024<\/h2>\n

Chicago recorded $948 million in total office sales through November 2024 to rank 11th nationally and lead the Midwest. Even so, this is slightly lower than the $992 million recorded during the same period in 2023, when Chicago ranked ninth nationwide. Despite the dip, 2024 marked the return of large transactions exceeding $50 million \u2014 a category that was absent from August 2022 through December 2023.<\/p>\n

In 2024, at least five Chicago properties (including 70 W. Madison) traded for more than $50 million. The largest deal was the $125 million sale of 333 W. Wacker Drive, a 36-story tower acquired by Beacon Capital. Although this price failed to match the property\u2019s 2015 valuation of $156 million, it nevertheless represented Chicago\u2019s most expensive office transaction in more than two years. Notably, Beacon Capital reacquired the building at a steep discount, having sold it in 2004.<\/p>\n

Another high-profile sale was the 41-story tower at 875 N. Michigan Ave., sold for $60 million \u2014 nearly half its 2017 price. Additionally, Murphy Development Group and InSite Real Estate are reportedly<\/a> nearing the $70 million acquisition of 311 S. Wacker Drive, significantly lower than the $302 million paid in 2014.<\/p>\n

Chicago\u2019s office market mirrors broader Midwest pricing trends, with sale prices among the nation\u2019s lowest. As of November 2024, Chicago averaged $97 per square foot, followed by Detroit at $80 per square foot. The Twin Cities, the only Midwest market surpassing $100 per square foot, still trailed the national average of $179 per square foot.<\/p>\n

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If you’re seeking office space in Chicago<\/a> or other markets, visit the CommercialSearch.com<\/a> homepage to begin your search.<\/p>\n\n\n\n\n\t\n\t\n\t\n\t\n\t\n\t
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On Dec. 30, Namdar Realty Group and Mason Asset Management acquired the 57-story office tower at 70 W. Madison St. in Chicago for $85 million. Spanning 1.44 million square feet, the building ranks among the largest recent acquisitions in the city. The $61-per-square-foot sale price also falls well below the $97-per-square-foot average for Chicago office properties through November 2024, according to CommercialCafe\u2019s recent office report. The transaction highlights a sharp decline from the building\u2019s 2014 valuation of $374.6 million. Financial difficulties, including a missed loan payment that led to foreclosure proceedings by Bank of America, preceded the sale. The property…<\/p>\n","protected":false},"author":3163,"featured_media":2346,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[34],"tags":[25],"class_list":["post-3879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-office-reports","tag-chicago-il"],"acf":[],"yoast_head":"\n70 W. Madison Sells for $85M as Chicago Office Market Discounts Deepen<\/title>\n<meta name=\"description\" content=\"Namdar Realty Group and Mason Asset Management acquire 70 W. 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