The office building in Chicago was sold for approximately 87% less than it was purchased before the coronavirus pandemic, indicating a sharp decline in the value of commercial real estate in one of the largest cities in the U.S., Bloomberg reports.
The 22-story building was purchased for $41 million by a joint venture of New York-based 601W Companies and David Werner Real Estate Investments.
In 2018, the seller — Brookfield Asset Management — paid $306 million for the tower.
The vacancy rate in the 1.4 million square foot (130,000 square meter) building is approximately 53%.
The value of office real estate is recovering slowly across America after the pandemic, but Chicago has been hit particularly hard. In the fourth quarter of 2025, the vacancy rate for office space in the city rose to about 27%, according to brokerage firm Cushman & Wakefield.
The U.S. office market is experiencing a crisis: for the past three years, the vacancy rate has been increasing, leading to the bankruptcy of major investors. Among the reasons cited is the refusal of Americans to return from remote work.
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