Willis Tower Sold for $1.3 Billion

Blackstone Group purchased the Willis Tower this weekend for $1.3 billion, reports the Wall St. Journal.

“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,” Jacob Werner, a managing director in Blackstone’s real estate group, said in a Monday statement.

And the private equity group intends to invest $150 million in upgrades to the Skydeck and retail space to make the former Sears Tower landmark an even bigger tourist attraction.

The skyscraper’s sky-high sales price is being described as Chicago’s largest real estate deal for a single property.

But what will the building be called now? Many Chicagoans refuse to call the skyscraper the Willis Tower, obstinately referring to it as “the Sears Tower.”

Blackstone Group — which manages an $81 billion real estate portfolio — says it’s too early to say. (How about Blackstone’s Big Black Monolith?)

But Blackstone definitely wants to increase the tourist appeal. MarketWatch reports that $25 million in revenue is collected each year from visitors to the building, while the Empire State building rakes in $82 million annually.

The observation deck on the 103rd floor includes the “Ledge,” glass cubes jutting out from the building that allow people to look straight down. (What else could they offer? How about bungee jumping?)

New Yorkers Joseph Chetrit and Joseph Moinian and Skokie-based American Landmark Properties bought the 110-story building in 2004 for $840 million. Crain’s Chicago predicted the tower would fetch $1.5 billion, but $1.3 billion is still a nice payday for the sellers.

The Willis Tower stands at 1,451 feet tall and is the nation’s second tallest building, behind the 1,776-foot-tall One World Trade Center in New York City.

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