San Francisco’s Stockbridge Capital is set to take a loss on an office building it wants to unload in the West Loop.
While an asking price hasn’t been disclosed for the 116,879-square-foot, Daniel Burnham-designed building at 600 W. Jackson Boulevard, a person close to the deal told Crain’s that bids are expected at about $16 million, or about $140 per square foot. Stockbridge hired the Chicago office of Cushman & Wakefield for the sale.
A Stockbridge venture paid $23.5 million for the eight-story property in 2017, when it was about half occupied and demand was strong for downtown office space. The company spent close to $8 million on upgrades and renovations, including almost $2 million to build move-in-ready office suites.
The sale will test whether investors are still interested in brick-and-mortar office buildings amid the work-from-home shift during the pandemic. Many companies are seeking newer buildings with efficient air filtration systems, which could be a disadvantage for older properties like this one.
Stockbridge sued one of the tenants in 2020 over unpaid rent. In the lawsuit, Stockbridge said New York-based Industrious abandoned its space and the $4 million it owes on a lease that runs through 2030. The suit is pending.
The building’s largest tenant is coworking provider Workbox, which leases 14,000 square feet.
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[CCB] — Victoria Pruitt