By Barbra Murray, Contributing Editor
Chicago—CIM Group has expanded its presence in Chicago by 1 million square feet with the acquisition of Four40, the office tower located at 440 LaSalle St. in the city’s business and financial district in the Central Loop area. CIM purchased the property from Tier REIT Inc. in a $191 million transaction.
Four40, formerly known as One Financial Center, last changed hands at the height of the market. It was in 2007 when Tier, then Behringer Harvard REIT I Inc., purchased the asset from Beacon Capital for approximately $270 million in a four-property portfolio transaction. But names and price tags aren’t all that have changed; the office destination has undergone a transformation of sorts, courtesy of a recently completed renovation that added a 25,000-square-foot tenant amenity space to the 31-year-old property.
There’s a lot for any investor to love at Four40, which is home to the likes of the Chicago Stock Exchange, the Associated Press and Commonwealth Edison. In addition to being transit-centric—there’s a Metra station at the entrance, and elevated and subway CTA lines are a stone’s throw away—the property, which consists of a 954,000-square-foot tower and an 83,000-square-foot annex, boasts a private social and athletic club, as well as the presence of the 21-room Buckingham Hotel on the 40th floor. There’s also a 5,000-square-foot retail outparcel.
For CIM, however, one of the most attractive features of Four40 is its location. As noted in a press release on the transaction, Chicago fits with the company’s investment model that centers on established and emerging urban areas with solid infrastructure and transportation networks. The company is, indeed, keen on the Windy City. Last month, it wrapped up construction of the 690-unit Marquee at Block 37 apartment tower, and last year it purchased a 290,000-square-foot office condominium ownership interest at 625 N. Michigan.
Image courtesy of Yardi Matrix