(Reuters) — The owners of North America's tallest building, formerly known as the Sears Tower , are looking for a buyer or an investor to help recapitalize the building that is a staple in the Chicago skyline, two sources familiar with the situation said on Wednesday.
The Willis Tower , the 110-story, 4 million square-foot building on Chicago's South Wacker Drive, carries $780 million of debt on it, said two sources, who asked not to be identified because they were not authorized to speak publicly about the matter.
A group that includes Chicago-based American Landmark Properties Ltd and New York developers Joseph Moinian of the Moinian Group and Joseph Chetrit of the Chetrit Group bought the tower in 2004 for about $900 million.
Representatives of those investors were not available for comment.
Many investors who bought U.S. commercial real estate during the boom years of 2003 through 2007 have needed a loan modification or an infusion of capital to hold on to properties because rents or occupancy did not go as planned.
A recapitalization gives a new investor a percentage of ownership in the building in exchange for the investment. As U.S. capital and investment interest has waned and prices have declined, investors from China, the Middle East and Canada have stepped up as new investors and buyers in U.S. commercial real estate.
Read more: http://www.chicagorealestatedaily.com/article/20110601/CRED03/110609981/willis-tower-owners-seek-investor-or-sale#ixzz1O42AzBpZ
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Wednesday, June 1, 2011
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