By Kristena Hansen | Phoenix Business Journal
Phoenix-based Cole Corporate Income Trust Inc. recently purchased the 234,000-square-foot headquarters of national meat purveyor Hillshire Brands Co. in downtown Chicago for a whopping $97.5 million, according to a company statement this week.
According to my calculations, Cole paid about $417 per square foot for the building.The average price per square foot for office space the Chicago area was $120.64 in March, according to research by LoopNet.
The Hillshire headquarters recently received an extensive makeover by Sterling Bay Cos., which entered into a long-term lease with Hillshire early on in that process, the statement said.
For Cole, the building marks the 27th asset addition to its portfolio, which is valued at $731.1 million based on purchase prices. Cole Corporate Income Trust is one of six real estate investment trusts that are owned and managed by Cole Holdings Corp., one of the largest non-traded REITs in the nation.
“This was a unique opportunity to acquire a Class-A, single-tenant office in the desirable West Loop of Chicago,” Boyd Messmann, senior vice president of office and industrial acquisitions for Cole, said in the statement. “One of the key factors was the long-term lease — nearly 15 years — with an investment-grade tenant.”
Hillshire’s meat product brands include Jimmy Dean, Ball Park, Sara Lee and Hillshire Farm.
