South Korea's Mirae Asset Global Investments has purchased a 31-story office tower in Chicago, marking its first investment in the city.
The fund paid $218 million for the tower at 225 W. Wacker, which is located in Chicago's West Loop. The seller was 225 West Wacker Acquisition Company.
Jones Lang LaSalle, which managed the deal, also arranged $115 million in acquisition financing through Principal Real Estate Investors and Allianz Real Estate of America, who provided the 5-year loan.
The building was built in 1989 and has undergone $8 million capital improvements program "including lobby upgrades, elevator modernization, restroom and corridor renovations and an amenity floor that rivals new construction," JLL said. The 650,812-square-foot property is currently 91 percent leased to tenants including Edwards Wildman Palmer, PPM America, Merrill Lynch, CBIZ, Booz & Co., True Partners Consulting and Apple.
International investors seeking higher yields are setting their sights on Chicago, as core office assets in coastal markets are becoming more scarce and expensive," said Jones Lang LaSalle's international director Bruce Miller. "Chicago is starting to see the resurgence of cross-border investment, as evidenced by this transaction.
Headquartered in Seoul, Mirae Asset manages "$58 billion in assets globally through a diversified platform to offer market-leading franchises in traditional equity and fixed income products, ETFs and alternative strategies, such as real estate, private equity and hedge funds."