Golub/Blackrock Aquire Land for Block 37

GOLUB BLACKROCK VENTURE ACQUIRES LAND FOR OFFICE TOWER ON DOWNTOWN CHICAGO’S “BLOCK 37”

Secures Air Rights for Apartment and Condo Towers


CHICAGO, IL (November 1, 2006) – A joint venture of Golub & Company and BlackRock Diamond Property Fund has closed on the purchase of a major portion of the land comprising “Block 37” in downtown Chicago, said Michael Newman, Golub’s president and chief executive officer. Ground has been broken for a 17-story, 440,000-square-foot office building to be anchored by CBS Broadcasting, Inc. and Morningstar, Inc., which together will occupy about 80 percent of the building. Completion is scheduled for spring 2008.

The seller was The Mills Corporation, which remains the developer of the 265,000-square-foot retail component of the mixed-use project. Construction is now under way.

In a separate transaction, the Golub-BlackRock venture acquired the air rights over The Mills Corporation’s retail building and will develop two residential towers, one a condominium building with approximately 381 units and the other a rental building with approximately 416 apartments. Construction of these two towers is expected to begin in first quarter 2008.

Lee Golub, executive vice president of Golub & Company, handled the transaction for the Golub-BlackRock venture. He estimates the total project costs for the office and residential components at approximately $450 million.

“This project is now well on the way to success,” said Golub. “Each of the components complements the others. And we’re excited to take a lead role with BlackRock and The Mills Corporation in creating a mixed-use development that will enhance the Loop’s 24-hour activity.”

Newman said he believes that Golub & Company’s expertise in both office and residential development and its ability to coordinate and integrate a complex development program led to the decision by The Mills Corporation to select the Golub-BlackRock venture for the project. “After years of starts and stops on this high-profile site, everyone involved is confident that we now have the right formula and financial strength to deliver beyond expectations. We are very pleased to have BlackRock as our partner on this project.”

Block 37 is bounded by State, Randolph, Dearborn and Washington Streets along downtown Chicago’s renowned State Street. The office building will rise at 22 West Washington. The remaining top three floors of office space are now being marketed.
The Chicago office of Holiday Fenoglio Fowler represented The Mills Corporation in the land sale to the Golub-BlackRock venture.
The architect for the office building is Perkins & Will. The general contractor is W.E. O’Neil Construction Company. The architect for the residential towers is Solomon Cordwell Buenz.

Chicago-based Golub & Company (www.golubandcompany.com) and its affiliates are active internationally in real estate development, acquisitions, asset and property management, leasing, and corporate real estate services. Overall, since its founding nearly 50 years ago, the company has owned, leased or managed more than 30 million square feet of commercial and multifamily real estate properties.

Golub & Company and BlackRock earlier partnered on the development of The Streeter, a recently completed, 480-unit luxury apartment tower in Chicago. Golub & Company also owns the building where CBS has long had its studios and offices, at 630 North McClurg Court.

BlackRock (www.blackrock.com) is one of the world’s largest publicly traded investment management firms. Headquartered in New York City, the firm has over 4,500 employees in 18 countries and a major presence in key global markets. BlackRock manages a global platform of over $45 billion in combined public and private real estate debt and equity investments.