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News release

Chicago, IL.

Jones Lang LaSalle Achieves $117 Million on the Closing of the Sale of Barneys of New York Retail Property Located a 1-15 East Oak in Chicago

Foreign investor purchases assets to allows property to remain a key amenity for city of Chicago


CHICAGO, April 11, 2011 – Jones Lang LaSalle today announced the firm’s Capital Markets experts have finalized a marquee closing in the city of Chicago with the sale of the six-story, 94,600-square-foot retail property located at 1-15 East Oak in Chicago to a Tel Aviv-based investor. The property, which houses Barneys New York and Citibank, is a high-end retail location situated in the prestigious Gold Coast/North Michigan Avenue neighborhood in the heart of Chicago’s premier retail shopping and tourist area. This is one of the largest retail investment sales transactions to occur in Chicago this year fetching a record price of more than $1,200 per square foot and it registers a strong vote of confidence from foreign investors on the growing strength of the Chicago investment market. 
 

Guy Ponticiello, Managing Director and head of Jones Lang LaSalle’s Corporate Finance & Net Lease team lead the assignment along with Investment Sales Managing Director Bruce Miller and Real Estate Investment Banking Managing Director Dave Hendrickson.

Anglo Irish Bank, which was seized by the Ireland government in 2009, provided the financing for the build to suit asset construction of the property for Barneys New York. Anglo Irish foreclosed on its $93 million loan made to well-known Chicago developers.

“Our ability to secure a new, all cash buyer from overseas is a credit to the firm’s global relationships. The buyer understood that asset was among the most desirable retail real estate in the Chicago MSA. Barneys and Citibank offer strong credits and full occupancy that equated to a valuable tenancy and a prime location with a great deal of upside. We were able to capture a price that was well above where the bank valued the property at just $100 million. This is a win-win for all parties and it is a huge save for two of Chicago’s key developers, for the bank that recovered more than its original investment, and for Gold Coast retail community” said Ponticiello.
 
As property fundamentals continue to improve or key assets face unanticipated challenges, foreign capital continues to funnel into these key U.S. real estate products. This is the second major, domestic commercial real estate purchase from a Jones Lang LaSalle offering for this Tel Aviv-based investor, which purchased the two-property 720,727 square foot 452 Fifth Avenue & One West 39th Street at 144,394 square feet for $330 million.

Ponticiello added, “This transaction could have positive impacts for the retail values in the Gold Coast given demand rapidly returned to the U.S. Luxury Retail Market in 2010, fueling a projected 12% annual increase in sales to total revenue of $66 billion after almost a year of declining sales.” 

The property is located at 1-15 East Oak Street approximately a mile and a half north of Chicago’s Loop District, and half a mile west of Lake Michigan and two miles east of I-90/94. Current retailers within a half-mile of the Property include Bloomingdales, Nordstrom's, Peninsula Hotel, Hilton Hotel, Ritz Carleton Hotel, Gibson’s Steakhouse, Hermes, Prada, Gucci and many more.

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for our clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2010 alone, Jones Lang LaSalle Capital Markets completed $43 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $33 billion in global investment sales and buy-side transactions, equating to nearly $140 million of investment trades completed every working day around the globe. In the United States, Jones Lang LaSalle grew its office broker volumes by 257 percent in 2010 and is quickly gaining market share across all property types. Our Capital Markets team comprises approximately 800 specialists, operating in 185 major markets worldwide.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 185 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $41 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.
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