Beacon Capital buys Chicago office building AMA Plaza for $467.5 mln

Beacon Capital Partners has acquired the Chicago-based office building AMA Plaza for $467.5 million. The sellers were Riverview Realty Partners and Five Mile Capital Partners LLC.

PRESS RELEASE

CHICAGO–(BUSINESS WIRE)–Riverview Realty Partners announced today that it has closed on the sale of AMA Plaza, located at 330 North Wabash Avenue, in downtown Chicago, including its leasehold interest in the adjacent public parking garage located at 401 N. State Street. The purchaser is an affiliate of Beacon Capital Partners, LLC, a private real estate investment firm based in Boston, Massachusetts. The purchase price was $467.5 million and the closing occurred on September 29, 2016.

“We are pleased to announce the sale of AMA Plaza, which we believe is the largest Chicago CBD office asset sale in 2016 year-to-date,” said Jeffrey A. Patterson, Riverview Realty Partners’ President and CEO. “The property is in excess of 96% leased and we have completed our renovation of the building that includes a new state of the art fire and life safety system, new restrooms, elevator and cab modernizations, updating of the building’s HVAC system, and asbestos abatement. We have also completed for the benefit of all of the building’s tenants a 5,000 square foot state of the art fitness center, a food service cafe and a conference center. When we commenced the releasing and repositioning of 330 N. Wabash, the building was only 39% occupied. We were able to lease the building to high quality tenants, including The American Medical Association, the international law firm of Latham & Watkins LLP, SmithBucklin Corporation, BDO USA LLP and Swanson, Martin & Bell, LLP. This exceptional tenant roster validates the quality of the building’s redevelopment.”

AMA Plaza was owned and sold by a joint venture between affiliates of Riverview Realty Partners, a real estate operating company headquartered in Chicago, and Five Mile Capital Partners LLC, a Connecticut-based commercial real estate and alternative investment firm, which also owns Riverview. AMA Plaza is 52 stories tall and contains approximately 1.14 million rentable square feet of office space. The building was designed by famed architect Ludwig Mies van der Rohe and completed in 1971. It was designated with landmark status by the City of Chicago and placed on The National Register of Historic Places by the National Park Service in 2008. Riverview was the asset and property manager and also the leasing agent for the property prior to the sale. The adjacent public parking garage located at 401 N. State Street included in the sale is 12 stories tall and contains approximately 900 parking spaces.

Holliday Fenoglio Fowler, L.P. (HFF) acted as the seller’s broker for the transaction and also assisted the buyer with its financing. The HFF sales team representing the seller was led by senior managing directors Jaime Fink and Jeff Bramson, and also included associate director Patrick Shields.

In June 2016, AMA Plaza was awarded the 2016 The Outstanding Building of the Year Award (TOBY) in the Over One Million Square Foot category at the Building Owners and Managers Association (”BOMA”) International annual conference in Washington, D.C. The International TOBY Award is the most prestigious and comprehensive program and award of its kind in the commercial real estate industry. Riverview Realty Partners has also won and obtained many other prestigious awards and designations for AMA Plaza, including (i) the TOBY award three other times for both the BOMA Chicago and the 5-State North Central Region and (ii) the Innovative Deal of the Year Award at the Chicago Commercial Real Estate Awards in 2012 sponsored by The Greater Chicago Food Depository. The Building obtained LEED Gold status in 2015 from the U.S. Green Building Council and is one of the few buildings of its age and size to obtain LEED Gold status. AMA Plaza was also awarded Energy Star Ratings each year starting 2009 through 2016 from the Environmental Protection Agency for being a building that uses less energy than 86% of similar buildings in the Country. In addition, in 2014 the Building received the Illinois Governor’s Sustainability Award.

AMA Plaza also includes a five-star Langham Chicago Hotel, owned and operated by affiliates of The Langham Hospitality Group. The hotel is located on floors 2-13 of AMA Plaza and opened in July 2013. The hotel features approximately 316 rooms and suites and includes a full service restaurant (including private dining facilities), elegant and sophisticated meeting and conference facilities, as well as a fitness facility and the hotel’s award-winning wellness retreat, Chuan Spa. The Hotel is separately owned and was not included in the sale to Beacon Capital Partners.

About Riverview Realty Partners
Riverview Realty Partners is a self-administered and self-managed real estate investment company which acquires, owns, manages, leases, develops and redevelops office buildings. The Company leases and manages its properties, and also oversees the leasing, asset and property management of various other properties for affiliates of Five Mile, including a 625,424 rentable square feet office tower located at 100 Peachtree Street in Atlanta Georgia, a 791,800 rentable square feet office tower located at 411 E. Wisconsin Avenue in Milwaukee, Wisconsin, a 439,761 rentable square foot office building located in Houston Texas and a portfolio of five properties containing 638,004 rentable square feet in the Cleveland Ohio metropolitan area. For more information about Riverview Realty Partners, contact the Company’s Chicago headquarters at (312) 917-1300 or visit its website at www.rrpchicago.com.

About Five Mile Capital Partners
Five Mile Capital Partners LLC is an alternative investment and asset management company established in 2003. The firm specializes in investment opportunities in real estate, debt products, structured finance, asset-based lending and financial services private equity. Five Mile’s Principals have significant experience, knowledge and skills relevant to the financial services industry and believe the cyclical and dynamic nature of the sector continually provides a broad opportunity for investments across the capital structure. The Firm’s headquarters are based in Stamford, Connecticut with an office in New York City. For more information, visit www.fivemilecapital.com.