Home Private Equity Private-equity firm paying one of highest office rents in Chicago history

Private-equity firm paying one of highest office rents in Chicago history

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Linden Capital has about 50 employees today but expects to add another 25 people to its team in the next 12 months, according to Davis. The firm plans to sublease its existing space, which it leases through 2028, Davis said.

The new lease notches an early win for a joint venture of Chicago-based Callahan Capital Partners and New York-based Oak Hill Advisors, which recently paid $210 million to acquire the controlling equity stake in the skyscraper. The deal valued the building at more than $1 billion, the second-highest valuation for a Chicago office building, behind only Willis Tower’s $1.3 billion sale in 2015.

The tower, which is named for 500,000-square-foot anchor tenant Bank of America, was more than 82% leased as of early last month. Law firms highlight its list of long-term tenants, including Jones Day, Morgan Lewis & Bockius, Perkins Coie, King & Spaulding and Cooley.

A joint venture of Chicago-based Riverside Investment & Development and Houston-based Howard Hughes had previously lined up a deal with a luxury co-working provider to occupy the 53rd and 54th floor in the tower, but that agreement fell apart, sources said. Those floors remain available, according to real estate information company CoStar Group.

Linden was founded in 2004 by former First Chicago private-equity investors and is one of the largest dedicated health care private-equity firms in the country. The firm has invested in more than 40 health care companies and recently raised more than $3 billion for its fifth buyout fund.

Brad Serot and Justin Hucek of CBRE represented Linden Capital in negotiating the lease. Christy Domin and Drew Nieman of Riverside negotiated on behalf of building ownership prior to the property sale.

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