Property & Building Offloading Chicago Building for $154 Million

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Property & Building Corp., one of the few bright spots in Nochi Dankner's IDB group, said Thursday it was selling the Barneys building in Chicago for $154 million – $32 million more than it paid for the asset back in March 2011. It did not name the buyer.

The six-story, 9,000-square-meter building takes in annual rent of $9.8 million. It is located in Chicago's downtown area known as the Gold Coast. Property & Building bought the asset in March 2011 for $122 million; about $42 million came from own funds and $80 million from a long-term loan.

In February 2012, sources told TheMarker that Property & Building was considering a number of offers for the building at between $150 million and $160 million. The Israeli company hired the international real estate group CBRE to coordinate the sale.

The current deal reflects a pretax gain of $38 million and gross cash flow of $68 million, Property & Building said. This joins the $10.7 million cash flow the asset has already brought the company.

The brothers Jacob and Marc Schimmel are expected to a get a cut of around NIS 100 million for brokering the Barneys deal and the planned sale of the HSBC building in New York, which is slated to go for $750 million.

The Barneys building in Chicago.Credit: Flickr

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