Chicago-based investor Igor Gabal has acquired a 12-story office building in the West Loop for $4 million, representing a significant discount from its appraised value of $38 million when it was last sold in 2012. According to Crain’s, the property spans 240,000 square feet and was purchased for less than $17 per square foot.
The seller of this previously distressed building is an entity tied to Morgan Stanley. JLL brokers Bruce Miller, Jaime Fink, Pat Shields and Sam DiFrancesca marketed the property for sale. Despite being only half leased at present, it generated nearly $1.7 million in net operating income in 2022 – less than half of what it generated back in 2019.
In 2012, Alliance HP paid $51 million for this Bryn-Mawr-based property before splitting the building from its land ownership. However,the firm had to surrender control of the building via deed-in-lieu-of-foreclosure while retaining ownership over the land itself; now subjecting Gabal to a long-term ground lease agreement.
This news comes courtesy Connect CRE as they report on Chicago’s latest real estate developments without mentioning any specific organizations or projects by name.
