by Dan Rafter
Hertz Investment Group recently made a major investment in the Midwest office market, purchasing an office portfolio here for $416.9 million.
Equity Commonwealth was the seller of the office portfolio totaling 3.1 million square feet.
The buildings that Hertz purchased are 111 Monument Circle and 101-115 West Washington Street in Indianapolis, 100 East Wisconsin in Milwaukee and the North Point Office Complex in Cleveland.
Each of the buildings is significant. In Indianapolis, 111 Monument Circle, now known as Salesforce Tower, stands 48 stories and ranks as the tallest building in the city. The PNC Center at 101-115 W. Washington St. is known for its impressive 16-story atrium, and is home to the Hyatt Regency Indianapolis hotel.
In Milwaukee, the Faison Building at 100 E. Wisconsin Ave. stands 37 stories and is the second-tallest building in the city. Major tenants include Wells Fargo Bank and PricewaterhouseCoopers.
The North Point Office complex in Cleveland includes two buildings, one standing five stories, the other 19. A nine-story atrium connects the two properties.
The portfolio that Hertz purchased is a strong one. The properties here were 86.5 percent leased at the time the sale closed.
Hertz officials said that the office portfolio purchase was an example of the company’s acquisition strategy for the Midwest.
“One of Hertz’s primary growth strategies has been to acquire the best-of-class office buildings in the central business districts of mid-sized markets, and we feel very fortunate to include four such properties in one deal,” said Judah Hertz, chairman of Hertz, in a written statement.