GlobeSt.com
December 5, 2001

Zeller Bests Competition for Michigan Avenue Landmark

CHICACO-Zeller Realty Corp. has prevailed over two other suitors to purchase the Equitable Building, which at 401 N. Michigan Ave. has a prominent place in Downtown Chicago, between the Chicago Tribune’s headquarters to the north and the Chicago River to the south. The two other bidders for the building were also Chicago real estate firms, Golub & Co. and M&J Wilkow Ltd.

The 35-story, 755,000-sf building has been owned since it was built in 1965 by its primary occupant, Equitable Life Assurance Society of the United States, which is headquartered in New York City. Currently, the building is 90% occupied, with the asking price for space at about $23 per sf to $24 per sf net. It was designed by Skidmore, Ownings & Merrill to be the life insurance giant’s Midwest headquarters. In 1990, it underwent a major renovation.

The purchase of the Equitable Building is Zeller’s second major one in the Chicago area in 2001. Earlier in the year, it teamed with ING Realty Partners to buy the Downtown 111 W. Washington building, also known as the Burnham Building, which measures 175,000 sf. The purchase price for the Equitable Building was not disclosed, though published reported pegged it at $120 million to $121 million. Zeller’s investment partner in the deal was Teachers Insurance and Annuity Association. Zeller Realty, headquartered in Chicago, also has buildings in the Twin Cities and Indianapolis.

Perhaps the distinctive feature of the modernist-style building is the name “EQUITABLE” in large (nearly a story tall) letters at the top of the building, which has identified the Michigan Avenue building for a good many years. That may change, however, since Zeller says that it already negotiating with a number of tenants—and firms that may move to the building—about the naming rights. There also are discussions about adding new restaurant space facing the Chicago River or holding more events on the plaza in front of the building on Michigan Avenue.

Go back to News