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Chicago’s Hyatt Center Sells at a 6.1 Cap Rate
The $625 million sale of the 49-story Hyatt Center at 71 South Wacker Drive is proof that the market is still strong for high-credit trophy buildings; the price represents a 6.1 percent cap rate. The purchaser is Southern California-based Irvine Companies, which plans to close the deal as quickly as possible.
The $419 PSF sales price is even higher than the anticipated $390 PSF when Pritzker Realty Group LLC initially decided to sell the approximately 1,500,000 SF office tower last summer. The Hyatt Center’s sale reflects a national trend where office building deals rose 124 percent in October to $2.1 billion, according to Real Capital Analytics, Inc (RCA). “Office investors focus on visible assets in major markets has resulted in stronger price pressures,” according to the RCA report.
The Hyatt Center was built in 2005 and has an A-list group of tenants that includes the Hyatt Hotels Corporation, law firm Mayer Brown LLP, and investment bank Goldman Sachs Group, Inc.