- June 21, 2000 - he owner of the John Hancock Center has bought Prudential Plaza, a 2 million-square-foot office complex overlooking Grant Park.
San Francisco-based Shorenstein Co. completed the transaction for about $380 million Tuesday, sources said. The hefty purchase price includes the 41-story Prudential Building at 130 E. Randolph St., the city's tallest when it was built in 1955, and next-door neighbor Two Prudential Plaza, 180 N. Stetson Ave., built in 1990.
The premiere properties were owned by a joint venture of Prudential Life Insurance Co. of America and Nippon Life Insurance Co., which was advised by the Chicago office of New York-based Eastdil Realty Inc.
The acquisition is the company's second in Chicago in 17 months, coming after it paid about $220 million for the 100-story Hancock building.
John Grassi, Shorenstein's chief investment officer, would not comment on the price.
The transaction is another sign of the emerging strength of the East Loop office market, which has regained favor with tenants for its mix of amenities and lower rents, compared with the West Loop.
And Grassi said the company's experience with its first acquisition was a factor in pursuing Prudential Plaza. "With the Hancock, we've certainly had excellent tenant retention and we've been able to achieve very good rental rates."
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