Friday, January 04, 2008

AT&T Completes $275 Million Sale Leaseback of Chicago Office Tower

Crains Chicago Business News - January 2, 2007

A New Jersey real estate firm has purchased the 31-story West Loop office of AT&T Inc. for $275 million in a sale-leaseback deal.

Kushner Cos. closed on the purchase Friday of 225 W. Randolph St. from the San Antonio-based telecom giant, according to a source familiar with the matter. AT&T signed a 15-year lease for all the office space in the building, which is roughly 900,000 square feet.

The purchase marks the first in Chicago for Florham Park, N.J.-based Kushner, which was primarily a residential developer in the Northeast but is now buying office properties in major metropolitan markets nationwide after selling its residential business last year. The company financed the deal with $40 million in equity and a short-term temporary loan that it plans to replace with permanent financing possibly as soon as this week.

A Kushner executive declines to comment, and a spokesman for AT&T didn’t respond to an e-mail seeking comment.

AT&T hired the Chicago office of CB Richard Ellis Inc. to market the building in the summer. AT&T or a predecessor had owned the building since it was built in 1966. Sphere: Related Content

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