Shorenstein Closes on 500 West Monroe

Shorenstein Company LP has closed on the acquisition of 500 West Monroe St., a 952,000-square-foot, Class-A office tower in Chicago's West Loop. The purchase price was not released but was reported to have been around $248 million or $260 per square foot. The seller was Tishman Speyer Properties, which negotiated the transaction. The acquisition is the first completed for Shorenstein Realty Investors Six LP, the $610 million real estate private equity fund raised by Shorenstein last summer. "Chicago is a deep and strong market and this is a prime asset within one of Chicago's most attractive submarkets," said Douglas Shorenstein, CEO and chairman of Shorenstein Co. "While 500 West Monroe is a top quality physical asset and is already delivering strong numbers, we feel we can add significant value to the property over the holding period through proactive and strategic management and leasing," he added. Like the company’s five prior funds, SRI Six was formed specifically to invest in high quality office buildings nationwide. 500 West Monroe was completed in 1992. Current tenants include GE Capital Corp., GATX Corp., March USA and the Federal Deposit Insurance Corp. (FDIC). The property is located at the corner of Monroe and Canal Streets with easy access to Union Station and Chicago Northwestern Station as well as the interstate system serving downtown Chicago. The property includes the largest in-building parking structure in Chicago, ten full levels of parking capable of accommodating 1,330 vehicles. The purchase is Shorenstein's third in Chicago since 1998 and brings the company's holdings in the city to more than 4 million square feet. The company’s other Chicago investments are John Hancock Center and Prudential Plaza.