Lend Lease's Value Enhancement Fund IV and JBCAcquisition and Development Fund I Acquire 333 West Wacker inChicago.
Business Editors
CHICAGO--(BUSINESS WIRE)--Aug. 25, 2000
Lend Lease Real Estate Investments, Inc. and The John Buck Company announced today the acquisition of 333 West Wacker Drive, a Chicago office property. The John Buck Company, who will also manage and lease the building, acquired its interest on behalf of The JBC Acquisition and Development Fund I. Lend Lease's majority interest was purchased on behalf of Value Enhancement Funds IV, a real estate opportunity fund for institutional investors. The property was purchased from Overseas Partners Capital Corp. for an undisclosed price.
333 West Wacker enjoys a prominent location in Chicago's West Loop sub-market and is widely considered one of the top office buildings in Chicago, as well as being a highly recognized architectural feature of the city's skyline. The property is located along the Chicago River and is bounded by Wacker Drive, Franklin Street and Lake Street.
"We expect 333 West Wacker to be a sound financial investment," says Charles Beaver, principal in charge of JBC Fund acquisitions for The John Buck Company. "The building's award-winning design, with the curved facade that addresses the bend of the river, makes it one of the city's most unique and admired properties."
Constructed in 1983, the 333 West Wacker Drive office building contains 826,632 square feet of rentable space throughout its 36 floors. The property is currently 93% occupied, with lead tenants including The John Nuveen Company and Skadden, Arps, Slate, Meagher and Flom.
Jim Ryan, principal and portfolio manager of Lend Lease's Value Enhancement Fund IV said, "333 West Wacker was a great opportunity to acquire a Class-A, trophy-quality asset in Chicago's strongest sub-market for a price below replacement cost. We also see additional upside potential through technological upgrades to the property."
"Over the next two years, we plan to introduce some enhancements to the property to support the technology requirements of today's high-tech firms," added Beaver. "An upgraded telecommunications infrastructure will be installed to provide tenants greater access to high-speed Internet connections, and improved electrical and cooling capacity are also planned."
Lend Lease's Value Enhancement Funds IV is the latest in a series of closed-end, enhanced-return real estate investment funds designed to take advantage of inefficiencies at varying stages in the real estate cycle. Since the inception of VEF I in 1993, the series of funds has found value in almost $2 billion in commercial real estate throughout the United States, including One North Wacker Drive, the premier 51-story, 1.3 million square foot office development in downtown Chicago. One North Wacker is also a joint venture with The John Buck Company.
