Chicago’s office building sales boom as Zara founder buys One North Wacker for $550M

Amancio Ortega, the founder of Zara and parent company Inditex, has acquired Chicago’s One North Wacker office tower for about $550 million, adding one of the city’s largest recent office deals to his growing property portfolio, according to Yahoo Finance. Ortega’s family office, Pontegadea Inversiones, completed the purchase from Irvine Company, the report confirmed.

The transaction includes the assumption of a $353 million commercial mortgage-backed securities loan that Irvine Company obtained in 2021, per The Real Deal. The sale ranks among the biggest U.S. office transactions of the year and is the largest Chicago office-building sale since the Aon Center changed hands more than a decade ago.

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One North Wacker draws major tenants

Built in 2001, One North Wacker rises 51 stories and contains more than 1.4 million square feet of office space, The Real Deal noted. According to the same publication, the tower is about 94% leased, a notable occupancy rate as downtown Chicago continues to face pressure from changing office demand after the pandemic.

Its tenants include professional-services firm PwC, UBS Group and Fitch Ratings, Yahoo Finance reported. The property sits in Chicago’s central business district and is considered a prominent trophy office asset.

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Ortega expands Chicago holdings

The purchase gives Ortega a larger position in Chicago, where his holdings already include a 492-unit residential tower, the former Esquire Theater building, a hotel and a North Michigan Avenue property with Tiffany & Co. as a tenant, according to both Yahoo Finance and The Real Deal.

Pontegadea’s broader portfolio includes hotels, apartment buildings, logistics facilities, shopping centers and office properties. Per Yahoo Finance, the family office also acquired the Capital 8 office complex in Paris for about $912 million, or roughly 850 million euros, in a major European transaction.

Ortega funds Pontegadea in part with dividends from Inditex. Yahoo Finance reported that the retailer is expected to pay him a record 3.2 billion euros, or about $3.6 billion, this year, providing a deep source of capital for large property purchases.

One North Wacker is the latest investment in Ortega’s strategy of acquiring major commercial properties in global markets. His purchase also offers a benchmark for the value of well-leased Chicago office towers as buyers and sellers continue to reassess downtown real estate.