Chicago office property

Real Estate Alert, May 5, 2004

A joint venture between Chicago firms Sterling Bay and Mark Realty bought 325 North Wells, a downtown office building on the north bank of the Chicago River. The team bought the building for less than $18 million from a Lehman Brothers-led partnership, which tapped Trammell Crow to broker the deal.

The 200,000-sf property was completely vacant at the time of sale. When it's fully stabilized, it should have a market value of about $25 million. The new owners plan to divide the 11-story property into office condominiums and sell them off individually. They already have a buyer lined up for four floors.