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News release

CHICAGO, IL

Jones Lang LaSalle Closes Sale of 55 West Monroe in Chicago to The Hearn Company


CHICAGO, Jan. 11, 2012 — In one of the Chicago market’s largest year-end transactions, Jones Lang LaSalle and The Hearn Company jointly announced the closing of the sale of 55 West Monroe, a Class A office building located in Chicago’s Central Business District. The Hearn Company, headquartered in Chicago, purchased the 803,000-square-foot office tower from LaSalle Investment Management for $136 million. 

The 40-story tower once known as Xerox Center, with its distinctively curved glass curtain wall, ranks among the Loop’s most recognized office properties. The new owner plans street-level changes to the entries, as well as significant upgrades to the amenities and common areas of the property.

“Seldom is there an opportunity in a top tier market to acquire an asset of this quality with the potential to execute a realistic business plan and add significant value.” said Stephen Hearn, President and CEO of The Hearn Company. “After a considerable amount of investing in the West and Southwest over the past decade, this acquisition gives us the ability to return home to this great city and recapitalize an iconic Downtown Chicago asset.”

Managing Directors Bruce Miller, Jim Postweiler and David Hendrickson led the transaction for Jones Lang LaSalle, along with Senior Vice Presidents Keith Largay and Chuck Hoag, Vice President Jascint Vukelich and Associate Nooshin Felsenthal.  JLL also arranged acquisition financing of $86.5 million in senior debt through Wells Fargo Bank and $21.5 million in a mezzanine facility through Redwood Commercial Mortgage Corporation for the new buyers.

“The Chicago market continues to show strong recovery, especially with the lack of new construction expected to be delivered to the market in the near future,” said Miller.  “This core-plus property will offer significant in-place cash flow to the new owners with additional value provided upon further lease up.”

Located at Dearborn Street, 55 West Monroe overlooks Chase Plaza, Lake Michigan and the city skyline. The 803,000-square-foot building features superior amenities including spacious meeting and conference facilities, a state-of-the-art fitness center with locker rooms and showers, bike storage and a staffed, on-site concierge service for the exclusive use of tenants.  Lobby retail includes a coffee shop, deli and sandwich shop, custom men’s suit maker, sundry store and banking services.

The tower, completed in 1981, underwent a 2002 modernization that introduced the city’s first and most advanced destination-based elevator system and a contemporary lobby design by prominent Chicago architect Lucien Lagrange. 55 West Monroe was named The Office Building of the Year in 2007 by Chicago’s Building Owners and Managers Association and received LEED Gold certification in 2010.

“It was certainly a challenge to navigate the choppy capital markets of July and August and successfully close a transaction of this size” Hearn said. “As we look at a tightening ‘A’ space office market, we see a real opportunity to increase occupancy and enhance value.”

The Hearn Company will manage, construct, and oversee the leasing and marketing program at 55 West Monroe, as they do all properties owned by the firm. Available space in the building ranges from 850 SF to 50,000 contiguous square feet, including five full floors.

About The Hearn Company
The Hearn Company, supported by a full complement of in-house leasing, management, construction and consulting services, has owned and operated institutional-quality commercial real estate throughout the U.S. for more than 35 years.  Headquartered in Chicago, Hearn has managed its own investments and partnered with others, always with one clear objective: adding value.  Whether repositioning an underperforming asset or enhancing a core investment, Hearn has built a national reputation as a progressive, hardworking and passionate owner and manager focused on bringing a personal touch to business relationships.  More information is available at www.hearncompany.com

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 $47.9 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.