A consortium of Korean Investors lead by Korea Post sought a U.S. investment property that offered a high cash yield, which is scarce in first-tier markets such as New York and San Francisco. The investor group confronted a changing interest rate environment and a complex tax and regulatory structure. The consortium needed a partner with both broad geographic scale and regional expertise, and the ability to migrate capital across borders efficiently and effectively.
In 2013, CBRE Global Investors acquired 161 N. Clark Street, a 49-story office building in Chicago, on the consortium’s behalf. The transaction was the first separate account transaction in the U.S. for CBRE Global Investors with Korean investors, who are increasingly seeking opportunities abroad. Located in the Central Loop submarket of downtown Chicago, the 1 million-square-foot property is 93% leased to a diverse roster of high-quality tenants with limited turnover.
CBRE Global Investors plans to implement a $14 million capital campaign to upgrade existing amenities and building systems and to maintain the property’s existing LEED Silver certification. It will also aggressively market the improvements to attract new tenants and accommodate existing tenants’ expansion needs.