JV Comprised of Equity Group Investments, Pearlmark and TIER REIT Sell 200 South Wacker to John Hancock

-- HFF Represents Seller in Transaction--

Business Wire

CHICAGO--(BUSINESS WIRE)--

The joint venture comprised of Equity Group Investments (EGI), Pearlmark Real Estate Partners, and TIER REIT announced today that it has sold 200 South Wacker, a Class A, 40-story, 754,750-square-foot office building in Chicago’s West Loop to John Hancock for $214.5 million. HFF marketed 200 South Wacker on behalf of the seller.

The building last changed ownership in June 2011 when the EGI/Pearlmark/TIER REIT joint venture bought the asset to recapitalize and reposition it, investing approximately $10 million in a capital improvement program. Enhancements included an upgrade to the lobby, entrance and common areas; a new 1,000-square-foot roof deck; and a new conference center with WiFi lounge. Leasing agent J.F. McKinney & Associates helped the former ownership team bring the property from 63% to 96% leased.

Designed by prominent architect Harry Weese & Associates and built in 1981, the property is an architectural icon. Its location in the heart of Chicago’s top performing West Loop submarket provides tenants with unobstructed views of the skyline in addition to proximity to countless amenities the city has to offer. The property is within blocks of many public transit options at the Union, Ogilvie and Rock Island commuter rail stations. Tenants also enjoy proximity to the retail, dining and cultural amenities in the vibrant West Loop. In addition to recent capital improvements, amenities at 200 South Wacker include the tenant-only Club 200 Fitness Center, conference facilities, a heated executive parking garage, a news and sundries shop, and an ATM in the lobby. The property also offers easy access to Quincy Park and an on-site water taxi to Michigan Avenue and other riverside destinations.

The HFF team representing the seller was led by senior managing directors Jaime Fink and Jeff Bramson and managing director Mark Katz.

About Equity Group Investments

Equity Group Investments (EGI) is the private investment firm founded by Sam Zell more than 40 years ago. The firm has an active portfolio spanning industries and continents with interests in real estate, energy, logistics, transportation, media and health care. The investment in 200 South Wacker was made through the Zell Credit Opportunities Fund, which focuses on the recapitalization of over-leveraged assets and companies, and invests opportunistically in loans and credit securities in both the real estate and corporate arenas. For more information, visit egizell.com.

About Pearlmark Real Estate Partners

Chicago-based Pearlmark Real Estate Partners is a private equity real estate investment firm that pursues domestic, value-added strategies through a series of institutional investment vehicles. Since its inception in 1996, the firm has made more than 500 office, industrial, retail, multifamily, and mezzanine loan investments nationwide, representing a gross investment of over $12 billion. Pearlmark and its partners, including insurance companies, public and private pension funds, foundations and endowments, banks, corporations, and high net worth individuals and families, have committed nearly $4 billion of equity capital to the firm’s investment activities. The company currently employs approximately 40 professionals and is headquartered in Chicago with offices in Denver and New York City. For more information, please visit www.pearlmarkrealestate.com.

About TIER REIT, Inc.

TIER REIT, Inc. is a Dallas, Texas-based real estate investment trust focused on providing quality, attractive, well-managed commercial office properties in dynamic markets throughout the United States, including Houston, Austin and Dallas/Ft. Worth, Texas; Chicago, Illinois; Philadelphia, Pennsylvania; Washington, D.C.; Charlotte, North Carolina and select other markets.

About HFF

HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF, together with its affiliate HFFS, offers clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit www.hfflp.com or follow HFF on Twitter at www.twitter.com/hff.

Contact:
Sellers:
Equity Group Investments
Terry Holt
312.466.3979
tholt@egii.com
Pearlmark Real Estate Partners
Rachel Hertel
312.499.1986
rhertel@pearlmarkrealestate.com
TIER REIT
Kelly Sargent
972.387.5473
ksargent@tierreit.com

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