R
obert Sarver's Arizona-based firm, 3Edgewood, has acquired the 1.6 million-square-foot building at 600 West Chicago Avenue for $88.7 million, marking the city's largest office property sale since 2018. The purchase follows the firm's strategy of targeting key U.S. markets, with prior acquisitions in Dallas, Houston, and Los Angeles.

    The building, originally constructed as the Montgomery Ward Catalog House in 1908, was redeveloped into an eight-story office complex. Its previous owners, Sterling Bay and J.P. Morgan Asset Management, sold it at a significant loss, fetching just $55 per square foot after buying it for $319 per square foot in 2018.

    Sarver sees potential in the property despite its 37.5% vacancy rate, which houses tenants such as Echo Global Logistics and Tempus. The company plans to invest in enhancements, including tenant suites and outdoor terraces, with Sterling Bay remaining as leasing agency and property manager.

    The deal reflects a broader trend of office owners facing financial struggles post-pandemic. Other notable sales include the Vanbarton Group's sale of its Midtown office building for $90 million after defaulting on an $87.5 million loan, and Metropolitan Life Insurance's sale of a 16-story Chicago office building for just $18.5 million in cash.