Ivanhoe Cambridge Inc. bought twin skyscrapers in Chicago’s West Loop for more than $360 million, giving the Canadian real estate investor more than 2.3 million square feet of office properties in the market.
Ivanhoe, the Montreal-based property unit of public pension-fund manager Caisse de Depot et Placement du Quebec, purchased 10 and 120 South Riverside Plaza, a 1.4 million-square-foot (130,000-square-meter) complex. The 21-story towers sit on the Chicago River, occupying two city blocks, the company said today in a statement.
“Chicago is one of the key U.S. cities we’ve set our sights on in order to build a solid national high-quality office-building platform,” Adam Adamakakis, Ivanhoe’s executive vice president for U.S. investments, said in the statement.
Ivanhoe is expanding in the U.S. through a partnership with Callahan Capital Properties, an investment firm run by Tim Callahan, the former chief executive officer of office landlords Trizec Properties Inc. and Equity Office Properties Trust. The Chicago transaction is the fourth in the past 12 months involving the two companies, Sebastien Theberge, a spokesman for Ivanhoe, said in an e-mail.
Callahan will manage the Riverside Plaza properties for Ivanhoe, Theberge said. It also is the manager for the venture’s other buildings, which include Manhattan’s 1211 Avenue of the Americas and Wells Fargo Center in Seattle.
Callahan “skillfully negotiated the acquisition process,” Adamakakis said in an e-mail. “On a larger scale, we believe the extra return on investment is more than ever about best-in-class asset management, of which CCP excels at.”