The new owners of the John Hancock Building is Sterling Bay. The Chicago developer has a more than $300 million deal to buy the office and parking portions of the 100-story skyscraper at 875 N. Michigan Ave., according to people familiar with the deal.
The exact price could not be determined, but it’s believed to be almost $310 million, according to the sources. The deal is for 717 parking spaces on floors four to 12 and about 908,000 square feet of offices on floors 13 to 41.
Not included in the deal are residential condominiums, retail and restaurant space, the 360 Chicago observatory and broadcast antennas atop the tower — all of which have separate owners. As part of the deal, Sterling Bay will own potentially lucrative naming rights.
The seller is a venture led by Chicago-based developer Hearn Co. Its investment partners are an affiliate of New York-based Fortress Investment Group and San Antonio-based Lynd Co. Sterling Bay’s deal comes at an eventful time for both the developer, which has been buying other high-profile Chicago buildings, and the 1,128-foot-tall tower. The tower, designed by Skidmore, Owings & Merrill and known for its black, X-shaped braces, was developed by John Hancock Mutual Life Insurance Co. It was completed in 1970.
In February, the Tribune reported the 48-year-old skyscraper was officially losing the only name it’s ever had, when Hearn said Toronto-based insurer Manulife Financial — which acquired John Hancock in 2004 — asked the building owners to remove its name and logos from the property. The insurer hasn’t been a tenant at the building in many years.
Although most Chicagoans will likely use the John Hancock name for years to come, the tower formally changed its name to the building’s address: 875 North Michigan Avenue. At the time of the name change, the Hearn venture put a planned sale of the office and parking space on hold. Read More Here From The Chicago Tribune
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