Howard Hughes Sells $210M Stake in Chicago Trophy Tower
This marks the second-highest valuation on record for an office building in the city.
110 N. Wacker Drive. Image courtesy of Nick Ulivieri Photography
The Howard Hughes Corp. has sold its entire equity interest in the 1.5 million-square-foot 110 N. Wacker Drive in Chicago, for $210 million, to Callahan Capital Partners and Oak Hill Advisors. The sale was made through a limited liability company that Howard Hughes owns 90 percent of. Eastdil Secured represented the seller in the transaction.
Co-developed by Howard Hughes and Riverside Investment and Development Co., the 55-story Class A office tower that came online in 2020 has floorplates ranging between 26,000 and 30,000 square feet, according to CommercialEdge data. A total of 110 parking spaces are available. The owner also added a secondary air-filtration system to the LEED Gold-certified building during the pandemic. The property includes 22,000 square feet of retail space, according to the same data provider. The office space is more than 80 percent leased to tenants including Bank of America, Heitman, Lincoln International, Jones Day and Morgan Lewis.
Located along the Chicago River, the office building is in the northwestern part of downtown Chicago. Ogilvie Transportation Center is 500 feet west of the property, across the river, while the Washington/Wells subway station is the same distance, to the southeast.
An important Chicago office sale
The implied value of the asset surpassed $1 billion, judging by price of the stake sold, which makes it the second-highest valuation of all time for a Chicago office building. Howard Hughes, which injected $13 million in cash and approximately $169 million in net proceeds over the 4-year development period, will reinvest the proceeds back into newer developments as well as use it to repurchase shares as part of its stock buyback program, said David R. O’Reilly, CEO of the company, in prepared remarks.
Active across several markets, Howard Hughes also plans to invest $325 million in Downtown Columbia’s Lakefront District. The first component is an 86,000-square-foot medical office building.
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