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News release

Chicago

Rare Opportunity for Landmarked, Creative Office Space In Chicago

Iconic Sullivan Center offers large floor plates, transit and superior location


CHICAGO, April 25, 2017 – JLL's Capital Markets​ experts have been retained by a partnership between Kohlberg Kravis Roberts & Co. L.P. and Madison Capital to market the office component of Sullivan Center, an iconic 833,000-square-foot trophy asset located in the heart of Chicago's Loop along the vibrant State Street retail corridor.​​​​​

International Director Bruce Miller and Managing Director Nooshin Felsenthal are leading marketing efforts for JLL.

"This building checks all the boxes when it comes to an outstanding investment opportunity," said Miller. "It offers an iconic structure, world-class rent roll, modernized infrastructure, a prime live, work, play location and the ability to realize incredible upside. It is also one of a very limited set of large floor plate buildings that cater to the progressive tenants that are driving the Chicago CBD office leasing market."

Added Felsenthal, "While creative office may have first been adopted by the tech community, it has matured into the preferred office product type across nearly every industry as Fortune 500 firms have and continue to move into this product type en masse. As a result, properties such as Sullivan Center have been attracting the most desirable tenants in the market."

Sullivan Center offers creative office space featuring high lofted ceilings and large floor plates ranging from more than 100,000 square feet on the lower levels to between 22,000 and 79,000 square feet on upper levels. The building has been a national historic landmark since 1970. It is currently 97 percent leased.

Sullivan Center's State Street location, in the heart of Chicago's Loop submarket, provides tenants access to all seven CTA El lines. The property is also densely served by CTA bus service along both State Street and Michigan Avenue as well as the new Loop Link BRT line and is within just a brief walk of both Union Station and Ogilvie Transportation Center. Nearby attractions include The Art Institute of Chicago, Millennium and Grant Parks, and the heavily trafficked State Street retail corridor.

"Sullivan Center provides investors with strong in-place cash flow as well as tremendous upside through multiple channels including raising significantly below-market rents to market rate. The competitive set of large floor plate creative office buildings have benefited from over 80 percent rent growth over the last five years," said Miller. "That rent increase is bolstered by the fact that the property has gone through a $200 million renovation focused on modernizing major mechanical systems and restoring the historical features of the building."

JLL 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 clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2016 alone, JLL Capital Markets completed $145 billion in investment sale and debt and equity transactions globally. The firm's Capital Markets team comprises more than 2,000 specialists, operating all over the globe.​

For more news, please visit The Investor, an online and mobile app news source providing real-time commercial real estate news to asset buyers and sellers around the world.

For more news, videos and research resources on JLL, please visit the firm's U.S. media center Web page: http://bit.ly/18P2tkv.

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.