A Canadian real estate investor has struck a deal to buy a 50-story office tower that overlooks Google’s redevelopment of the James R. Thompson Center in Chicago’s Loop business district.
Onni Group is negotiating to buy the tower at 161 N. Clark St. from French lender Societe Generale, according to people familiar with the situation.
An exact sale price could not be determined, but it is believed to be more than $120 million.
Although it would come at a big discount to the value of the $230 million loan on the tower, a price exceeding $120 million would stand out after years of heavily discounted deals in Chicago and other major cities.
The relatively high price reflects the tower’s high quality and easily accessible location near train stations and City Hall, according to people familiar with the property.
It doesn’t hurt that the Clark Street tower has a front-row seat to Google’s high-profile Helmut Jahn-designed Thompson Center, which previously was owned by the state of Illinois.
Google’s major overhaul of the glassy building, in partnership with local developers Prime Group and Capri Investment Group, has brought hope to downtown companies and real estate investors that the Loop office market can rebound after years of struggles.
Onni’s deal for the nearly 1.1 million-square-foot tower, previously reported by Crain’s Chicago Business, has not been completed and still could fall apart amid a challenging market for financing office deals.
Societe Generale and Onni did not respond to requests for comment from CoStar News.
High borrowing costs and a pullback by lenders for office deals have stalled several potential sales in Chicago. That includes a previous attempt by Chicago-based Farpoint Development to buy 161 N. Clark at a steep discount in early 2024 before that deal fell apart.
Built in 1992, the tower is nearly 89% leased, according to CoStar data.
Tenants include Grant Thornton and Cook County.
The tower last sold for more than $331 million in 2013. That buyer — South Korea’s postal system, advised by CBRE Investment Management — later refinanced the property with the loan from the Paris-based lender in 2018.
Societe Generale filed a foreclosure suit in late 2023 before last year formally taking title to the tower. Unlike some lenders, Societe Generale and asset manager Xroads Real Estate Advisors continued to aggressively seek new tenants while awaiting an eventual sale.
In one deal, Chicago law firm Salvi, Schostok & Pritchard added new space on the 35th floor while expanding the term on its existing space on the 47th floor.
Onni is looking to take over the Clark Street property after landing a series of leases for its redevelopment of the 33-story tower at 225 W. Randolph St. The Canadian firm is a longtime investor in Chicago real estate, including plans to build thousands of apartments on and around Goose Island north of the Loop over the next several years.
Onni also is the longtime owner of the 30-story office tower at 200 N. LaSalle St., near the Clark Street tower it is now buying.
For the record
The seller is represented by Eastdil Secured brokers Bryan Rosenberg and David Caprile.