In a $40 million deal, a longtime New York real estate firm is making its second office space acquisition on South Michigan Avenue this year.
U.S. Realty & Investment Co. would acquire the condominium interest in the 401,500 square feet of upper-floor office space at 122 S. Michigan, sources said. Last month, the 70-year-old firm bought the commercial condo interest in 332 S. Michigan Ave. for about $29 million.
In recent years, the firm has expanded its geographic reach by making acquisitions in Maryland, Texas and Wisconsin.
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The firm’s president, entrepreneur Ivor Braka, is also a key investor in the Congress Plaza Hotel, 520 S. Michigan Ave., which is going up for sale, sources said.
Chicago-based Jones Lang LaSalle Inc. represented the seller, a joint venture of Chicago-based Klaff Realty LP and Philadelphia-based investment fund Lubert-Adler Management Inc.
The joint venture declined to comment.
Carlucci debt deadline: Barring a last-minute refinancing by Joe Carlucci, a Lake County Circuit Court judge next week could enter a judgment of foreclosure in favor of lender U.S. Bank on the restaurateur’s popular namesake Lincolnshire location.
The two sides could still work out a deal, and even after a foreclosure Carlucci could continue to manage the restaurant, said George Grumley, a partner with law firm Piper Rudnick LLP, which represents the bank.
The Minneapolis-based bank filed suit more than a year ago, seeking to collect $2.2 million in past-due loans and accrued interest. A spokesman for Carlucci, president of Carlucci Hospitality Group Ltd., declined to comment.
AMA site stake: Two German investment funds have acquired a majority stake in the River North headquarters of the American Medical Association.
Chicago-based John Buck Co., which developed the 29-story building in 1990, said it will retain its stake.
The deal values the building at a little less than $130 million, sources said. The 622,500-square-foot building is 93.5 percent leased, with the AMA having 58 percent of the space.
One participant in the venture, known by the initials SKAG, is the pension fund advisory arm of Munich electronics giant Siemens AG. The other partner is a fund managed by KGAL Group, a finance firm based in suburban Munich.
The German funds are acquiring the interests of a fund managed by Sydney-based Lend Lease Corp. Ltd. and New York-based Morgan Stanley.
Bolingrook deal: Midwest Freightways Inc. did a sale/leaseback of a 258,000-square-foot distribution center in the Crossroads Business Park in Bolingbrook with Boston-based TA Associates Realty, said Patrick Sullivan, a senior director with Cushman & Wakefield, which advised the trucking firm. The price was more than $10.3 million, sources said.
Blackstone on market: The organization headed by the founder of transcendental meditation, Maharishi Mahesh Yogi, has hired NAI Hiffman to market the shuttered Blackstone Hotel, 636 S. Michigan Ave.
The asking price is $31 million, said Arthur Burrows, a senior vice president with the Oak Brook real estate firm.
Last year, the Netherlands-based, non-profit group abandoned plans for a luxury condo conversion of the 22-story structure.
Allstate leases: Colliers Bennett & Kahnweiler Inc. represented Allstate Insurance Co. in a 10-year renewal of a lease on a single-tenant, 145,000-square-foot building in Vernon Hills, said William M. Fausone, principal with CBK, a Rosemont-based real estate firm.
CB Richard Ellis Inc. represented UBS Realty Investors LLC, which owns 544 Lakeview Parkway.
CBK also represented Northbrook-based Allstate in a 121,400-square-foot lease for its Canadian headquarters in a Toronto suburb and the $24 million sale of a nearby, 256,000-square-foot office building, Fausone said.