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wo East Coast real estate firms are in talks to acquire the 57-story office tower at 70 West Madison Street in Chicago's Loop. Namdar Realty Group and Mason Asset Management are negotiating a purchase price of $60 per square foot, or approximately $85 million, according to CoStar. This would represent a significant discount from its 2014 valuation of $267 per square foot, when the building was purchased for $375 million.

    The sellers, a venture of Hearn, GEM Realty Capital, and Farallon Capital Management, are being represented by CBRE's David Knapp, Blake Johnson, Arthur Johnson, and John Saletta. The ownership group invested $53 million in renovations but has struggled with occupancy challenges, with only 68% of the building leased as of January.

    The sale would likely clear up a foreclosure lawsuit filed by Bank of America after a missed payment on a $305 million loan refinanced in 2018. The discounted price and low vacancy rate highlight the ongoing distress impacting Chicago's commercial landlords, who are facing a 25.8% third-quarter vacancy rate, up from almost 14% at the start of the pandemic.

    Namdar and Mason, known for purchasing distressed assets, particularly in retail and malls, have begun expanding their office holdings. The firms have acquired other properties, including One North LaSalle Street and 200 Public Square in Cleveland.