ChicagoChart of the week: April 13, 2015

Source: Blackstone, CoStar, Crain’s, Chicago Tribune

Blackstone upcycling capital in Chicago

• The world’s largest real estate private equity investor with $81B assets under management, Blackstone has been active in Chicago. In the first quarter, Blackstone sold their US industrial portfolio which included 18 Chicago area properties totaling 3.7 million square feet. The firm also sold the 408 key Itasca Westin as hotel to Philadelphia-based GF Management.

• As a buyer, Blackstone made the most expensive U.S. office purchase ever outside of New York, with their $1.3 billion acquisition of the Willis Tower. The firm has plans to improve common areas and retail space and enhance the tourist observation deck ‘the Ledge.”

• On April 10th, Blackstone, in partnership with Wells Fargo, announced the acquisition of a significant portion of the GE Capital Real Estate portfolio, including approximately 17 office buildings in suburban Chicago totaling 4.2 million square feet.

The Westin Hotel400 Park Blvd. Itasca, ILBuyer: GF ManagementSeller: BlackstoneSize: 12 stories / 408 keys Price: $27 million / $66,176 per key

The Willis Tower233 S. Wacker Dr. Chicago, ILBuyer: BlackstoneSeller: Chetrit Group, Moinian Group & American Landmark PropertiesSize: 3.8 million square feetPrice: $1.3 billion / $343 PSF

29 market U.S. industrial platformBuyer: GIC & Global Logistics PropertiesSeller: IndCor/BlackstoneSize: 117 M SF (3.7 M SF in Chicago)Price: $8.1 billion / ~$70 PSF

GE Capital Real Estate PortfolioBuyer: Blackstone & Wells FargoSeller: GE CapitalSize: 17 Buildings / 4.2 M SF (in suburban Chicago)Price: $23 billion total / $3.3 billion domestic equity assets