One noteworthy difference between the two deals is that Menashe financed the Wacker Drive purchase, compared with an all-cash deal for 230 W. Monroe. Menashe said he didn’t initially intend to get a loan for the deal, but interest from a debt partner “fell in our lap.”
A Chicago subsidiary of New York-based Obra Capital provided financing for the acquisition, according to Menashe, who declined to share the specific loan amount but confirmed it was less than 50% of the purchase price.
“We are excited to partner with experienced sponsors and be a part of the revitalization of various downtown office markets,” an Obra spokeswoman said in a statement.
Menashe said Chicago-based Annenberg Investments was also involved in the purchase as a small investor.
Timing on ‘value’ rents
One key part of Menashe’s thesis for buying the tower is timing. With many office landlords stymied by debt issues and unable or unwilling to chase new tenants, those that are ready to do deals are seeing strong interest from companies — particularly those that leverage a low purchase price to offer what he dubs “value” rents.
“The (demand) pressure is mounting significantly because there are so few buildings in the mix,” Menashe said. “We’re still in this really perfect time, if you can deliver value to brokers and tenants in the market, that you’re leasing space fast because of (that) pressure, combined with the (distressed) buildings. It’s fascinating.”
Menashe said he has enlisted Mark Bâby and Ben Cleveland of Stream Realty Partners to oversee leasing at 125 S. Wacker. The property was about 64% leased when it went up for sale earlier this year and has an average tenant size of just more than 8,000 square feet, according to marketing materials from Jones Lang LaSalle.
JLL framed the offering as an opportunity for a new owner to buy it at a discount and take advantage of the $21 million of capital improvements made by La Caisse, which was recently rebranded from Ivanhoe Cambridge. Renovations to the property included a lobby redo and updated tenant amenities.
The building was 80% leased when La Caisse bought the building. But tenant move-outs and space reductions have reduced that occupancy figure since then. Staffing and consulting firm Addison Group is relocating from 32,000 square feet in the building to the revamped tower at 225 W. Randolph St.
La Caisse had no debt on the building, according to Cook County property records. A spokesman for the firm declined to comment.
La Caisse is a division of Quebec City-based CDPQ, which manages dozens of public pension and insurance plans in the Canadian province of Quebec and reported net assets of $473.3 billion as of the end of 2024, according to its most recent annual report.
Menashe was founded in 1978 by Jordan’s father, Barry Menashe. The firm said it owns close to 7 million square feet of commercial properties nationwide.
JLL brokers Bruce Miller, Jaime Fink, Pat Shields and Sam DiFrancesca marketed 125 S. Wacker for sale on behalf of La Caisse.
