By Dan Orlando
Blackstone has signed an agreement to buy Chicago’s Willis Tower for $1.3 billion.
The investment giant and 233 South Wacker LLC announced the deal Monday.
The Willis Tower is a 3.8 million square-foot office building in downtown Chicago and, at 110 stories, is the second-tallest office building in the United States and the fifth-tallest office building in the world.
According to reports, Blackstone spent $1.3 billion on the iconic property, which is a Chicago-record for an office building.
When the deal finalizes it will be one of just 24 such purchases to surpass the $1 billion threshold within the United States and it will be one of only four domestic sales to occur outside of New York City.
New York currently holds the record for the largest domestic sale price of an office building, which was set in December of 2014 when the Crown Building at Fifth Avenue and 57th Street was soldfor $1.75 billion.
The sale will bound past the previous Chicago record, which was set just last year when a 60-story building at 300 North LaSalle Street sold for for $850 million.
Jacob Werner, a managing director in Blackstone’s real estate group, said, “We see great potential in further improving both the building’s retail operations and the tourist experience for one of the most popular destinations for visitors to Chicago.”
Douglas Harmon of Eastdil Secured was the exclusive representative on the transaction.