- Crain's Chicago Business reports Blackstone (NYSE:BX) has "a preliminary agreement to pay almost $1.5 billion" to buy Willis Tower (once known as Sears Tower). The price is equal to nearly $400/sq. foot for the Chicago landmark's 3.8M sq. feet of office space, and well above the $840M paid by Willis' current owners in 2004.
- The paper notes Willis Tower generates revenue not only from its office space, but also from its 103rd-floor Skydeck, retail/restaurant space, and broadcast space/antennas, as well as the sale of its naming rights to tenant Willis Group. Property broker Eastdil, hired to find a buyer for the tower, argues a new owner could generate extra naming rights revenue - Willis pays a below-market $1M/year - and also from selling Skydeck naming rights.
- In February, Blackstone struck a deal with RXR Realty to buy a ~50% stake in 6 NYC-area office buildings collectively valued at $4B.