Blackstone Group LP agreed to buy Chicago’s 110-story Willis Tower (formerly known as Sears Tower), the second-tallest building in the U.S., for $1.3 billion. It plans to upgrade the tower to retail and add an observatory space, Bloomberg reported.
Blackstone executives say the $1.3 billion is a record price for a Chicago office building. It will spend $150 million to improve the tower’s retail portion and spruce up the 103rd-floor Skydeck observatory, which attracts 1.6 million visitors each year.
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The sellers include New York-based investors Joseph Chetrit and Joseph Moinian, and American Landmark Properties Ltd., Bloomberg reported.
Jacob Werner, a managing director in Blackstone’s real estate group, said in a statement Monday: “We are bullish on Chicago as companies expand within and move into the city and look for first-class office space. We see great potential in further improving both the building’s retail operations and the tourist experience for one of the most popular destinations for visitors to Chicago.”
