WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
CONFINDENTIALITY AGREEMENT
Newmark Knight Frank and Eastdil Secured have been retained as the exclusive brokers for the debt and equity recapitalization
(“the Interest”) of Willis Tower (the former Sears Tower) at 233 South Wacker Drive, Chicago, Illinois (“the Tower”).
“At a soaring 1,450 feet and 110 stories high, the famed
Willis Tower stands alone atop Chicago’s pristine skyline.
An unparalleled vision of ingenuity, the Tower’s legacy
reaches far and wide, attracting millions of visitors
from around the world. This global icon enjoys an
unrivaled presence as the tallest building in the western
hemisphere.”
With over 30% of its revenue derived from non-office related income, Willis Tower is much more than an office building.
The instantly recognizable Tower contains approximately 4 million square feet, including 250,000 square feet of retail
space. The Tower offers the unique opportunity to invest in a stabilized office asset with opportunistic upside from the
Tower’s diverse business lines, including the Skydeck, rooftop broadcast facilities and tremendous untapped retail
potential. Additionally, there is exceptional development opportunity with a portion of the parcel approved for a 500room hotel.
The information in this online presentation is provided without representation or warranty. Prospective bidders should consult legal
counsel with respect to the zoning and development potential of the Tower.
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
CONFINDENTIALITY AGREEMENT
A Celebrated Office Presence
Located in the heart of downtown Chicago, the office component of the Tower is leased to an impeccable list of strong national and
international tenants. With its composition of long-term leases, the building faces minimal rollover and a stable expiration schedule
among the larger tenants such as United Airlines, Willis Group Holdings and Chubb Insurance. The Tower has outperformed the
Chicago office leasing market every year since its completion, and over 1 million square feet of new deals have been signed at the
Tower in the past 24 months alone, including over 650,000 square feet with United Airlines.
Enthusiastic Municipal Support
Given its status as one of North America’s most recognizable landmarks and Chicago’s most important icon, the Tower benefits from
extraordinary municipal support. As the city’s largest taxpayer, various programs and incentives have been created to bring tenants
to the Tower. The City of Chicago is currently considering a proposed $85 million tax increment financing (TIF) bond program for
the Tower, with $33 million set aside for the development of a net-zero-energy hotel, and $52 million designated towards the green
retrofitting of the Tower to meet LEED Platinum certification standards.
Assumable In-Place Financing
Investors have the ability to assume up to $780 million of debt on the Tower.
Largest Broadcasting Center in the U.S.
The irreplaceable broadcasting center is the largest antenna site of its kind in the United States. The communications tower serves as
the broadcasting hub for virtually all of the major television and radio stations in the Midwest.
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
CONFINDENTIALITY AGREEMENT
A Truly Unique Skydeck Experience
On a clear day, visitors to the Skydeck can see four states from its staggering height. At 1,353 feet above ground, the Tower’s 103rd
floor observation deck currently attracts over 1.3 million visitors a year and has the capacity to accommodate up to 3 million. The
inimitable Skydeck is a must-see for any visitor to Chicago.
Approximately $10 million of capital improvements have been invested in the Skydeck over the past 18 months, including the addition
of “The Ledge” experience, four fully enclosed glass boxes that protrude from the Skydeck, which offers unparalleled panoramic
views, including unobstructed views below as visitors look down through the glass beneath their feet. Revenue has doubled under
new management since 2004, and attendance continues to rise, with the single day attendance record recently set on the 4th of July,
2010.
The Skydeck also benefits from a lease that includes percentage rent with a merchandising and souvenir operator. A separate
10,000-square-foot retail store located in the Tower’s below-grade space where visitors exit the attraction recently opened this spring
and will add significantly to retail sales.
Untapped Retail Opportunity
While current ownership has enjoyed great success in drawing top-tier local and national restaurants to the Tower’s lobby and
mezzanine spaces, phenomenal opportunity lies with the current vacancy of the Tower’s best retail space located in the southwest
corner of the lobby and the redevelopment of the Tower’s lower level retail spaces. 150,000 of the 250,000 square feet of retail space is
located on two lower levels, which are accessible from the lobby via escalators. The space is one of the largest available retail blocks in
the West Loop and has the potential to draw a major national anchor tenant, as well as customers from surrounding West Loop office
buildings, the approximately 12,000 people who work in Willis Tower and the 1.3 million annual visitors to the Skydeck. Additional
retail opportunity lies in the existing event space which encompasses the entire 99th floor. This space has been virtually unused but
has the potential for development into one of Chicago’s premier nightlife destinations.
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
CONFINDENTIALITY AGREEMENT
Premium Naming Rights
The Tower’s naming rights are leased to Willis Group Holdings for significant additional income for the remainder of its lease. Other
opportunities to add additional income from naming rights include corporate sponsorship of Tower components such as the Skydeck
and the 99th floor event space.
Champion for the Green Initiative
There is an opportunity to recapture the world’s imagination as the planet’s tallest green retrofit building and serve as a “demonstration
project to the world.” As much as 60% of the estimated cost to achieve LEED Platinum certification for the Tower can be covered by
tax subsidies, incentives and vendor concessions. The project would extend the Tower’s life by 50 to 60 years and slash base building
energy consumption by up to 80%.
Click here to view video on Greening
Rare Hotel Development Opportunity
Willis Tower has zoning approval for a 500-room, 600,000-square-foot hotel/conference and events center. Plans include 30 corporate
suites and 40,000 square feet of retail. The hotel will be developed as a net-zero-energy hotel.
Click here to view video on hotel
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
CONFINDENTIALITY AGREEMENT
The property was ingeniously conceived and engineered by renowned architecture firm, Skidmore, Owings and Merrill LLP. The
infrastructure at the time of construction was decades ahead of its time and is still more advanced than many newly constructed
office buildings today.
Approximate Tower Square Footage
Office
3,600,000
Retail
250,000
Skydeck and Broadcast
60,000
Total
3,910,000
Site Size
2.96 acres
Year Built
1973, renovated in 1992, 2004, and 2009
Office Floor Plates
Four distinct floor plates accomodate tenants of various sizes
Lobby
Light filled, three story lobby with inviting retail
Main entrance on the west side of the building on Wacker Drive with second entrance on the
east side via Franklin Street
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
Amenities
• Seven Restaurants
• State-of-the-art gym
• Members only executive dining room and meeting facilities
Security
Among the best security systems in place in the world
Elevator
Tenants and visitors are never required to ride more than two elevators to reach their floor
from the lobby
Zoning
Zoned for office and mixed use with a portion of the parcedl approved for a 600,000-square
foot, 500-room hotel.
CONFINDENTIALITY AGREEMENT
Parking
Covered Executive Parking on Premises
270 spaces
Easement on Spaces Across the Street
1,000 spaces
Total
1,270 spaces
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
CONFINDENTIALITY AGREEMENT
A Grand Presence Downtown
Downtown/West Loop presence with main entrance on South Wacker Drive. Wacker Drive is the primary office corridor at the heart
of Chicago’s Central Business District. It is home to the majority of new office buildings built over the past 25 years and has the most
expensive office rents in the city. The location is far superior to the Michigan Avenue office market, home to Chicago’s second most
iconic office building, the John Hancock Center.
Fortune 500s Call Chicago Home
Chicago is the financial center of the Midwest. Its downtown office submarket commonly referred to as “the Loop,” serves as the
home to one of the world’s largest commodities markets as well as the corporate and regional headquarters for a number of prominent
Fortune 500 companies, including, United Airlines, Aon Corporation, Boeing, Exelon and RR Donnelley.
Third Largest Office Market in the U.S.
The Chicago metro area boasts 445 million square feet of office space, placing it behind only New York and Los Angeles.
Trend to Relocate/Consolidate in City
Firms like Willis Group Holdings and United Airlines have consolidated their Chicago area offices in the city to enhance corporate
synergies and take advantage of tax incentives, grants, job-training programs and a larger employee base.
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
CONFINDENTIALITY AGREEMENT
The Best Vacant Spaces on the Market
The Tower’s current vacancies consist of some of the building’s best spaces, including space formerly occupied by Goldman Sachs and
suites built out to high-end hedge fund specs. The views from the spaces available in the Tower are unparalleled.
Unparalleled Proximity to Major Transportation Hubs
• 1.5 blocks from Union Station
• 5 blocks from Ogilvie/Northwest Station
• 1 block from Chicago’s CTA Elevated Train System
• 2.5 blocks from LaSalle Station
• 2 minutes from entrances to Interstate 290 (Eisenhower Expressway/Congress Parkway)
and Interstates 90/94 (Dan Ryan and Kennedy Expressways)
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
AARICH
RICH HISTORY
HISTORY
CONTACT
CONFINDENTIALITY AGREEMENT
110-story, 1,450-foot (442 m) skyscraper
At the time of its completion in 1973, Willis Tower was the tallest building in the world, surpassing the World Trade
Center towers in New York. It held this rank for nearly 25 years. It is still the tallest building in the Western Hemisphere
and the third tallest building in the world.
Its revolutionary “bundled tube” design introduced a level of efficiency never before realized in a tall office tower.
World’s Tallest Skyscrapers
www.newmarkkf.com
WILLIS TOWER
(The Former Sears Tower)
233 South Wacker Drive
Chicago, IL
OVERVIEW
HIGHLIGHTS
PROPERTY DESCRIPTION
LOCATION & MARKET
A RICH HISTORY
CONTACT
CONTACT
CONFINDENTIALITY AGREEMENT
For further information please contact:
James D. Kuhn
President
Newmark Knight Frank
Douglas L. Harmon
Senior Managing Directort
Eastdil Secured
+1 212 372 2200 Direct Line
+1 212 372 2410 Fax
[email protected]
+1 212 315 7243 Direct Line
[email protected]
Stephen J. Clifton
Head of City Investment
Knight Frank LLP
Stephen Livaditis
Senior Managing Directort
Eastdil Secured
+44 (0) 20 7861 1312 Direct Line
+44 (0) 20 7606 5502 Fax
[email protected]
+1 312 601 9001 Direct Line
[email protected]
www.newmarkkf.com