Willis Tower, formerly the Sears Tower, Chicago's tallest building, may soon have a new owner: Blackstone Group, the world's largest private equity real estate owner.
New York-based Blackstone has a preliminary agreement to pay almost $1.5 billion for Willis Tower, according to a person familiar with its plans. Blackstone representatives have been visiting the building to perform due diligence on the 110-story icon, and it is looking to buy the West Loop tower for one of its funds.
Even for a firm with $81 billion of real estate assets under management, buying the 1,451-foot-tall tower is a big deal.
Along with the distinction of owning one of the world's best-known pieces of real estate comes control of a property that reaps about $10,000 of income every hour.
If it happens, the sale would be the 24th in U.S. history to reach the $1 billion mark, but just the fourth outside New York, and the first away from the coasts, according to New York-based research firm Real Capital Analytics. Intense bidding in coastal cities has driven down rates of return and caused many major investors to branch out into other cities.
A billion-plus sale also would shatter the $850 million record for Chicago set last year with the sale of the 60-story tower at 300 N. LaSalle St. The price per square foot, $652, also was a city record.
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