Sears Discounts Report on Buyer for Tower

Is a Japanese company buying the landmark Sears Tower in Chicago, the world’s tallest skyscraper?

In Tuesday’s edition, USA Today quoted Jack Barthell, managing partner at Kenneth Leventhal & Co., a Century City real estate consulting firm, as saying a Japanese real estate company--a client of his--was ready to buy the 110-story headquarters of Sears Roebuck & Co. “They’re close to a deal,” he told the newspaper.

By afternoon, however, Sears issued a statement that the paper had “erroneously reported that an unnamed Japanese company is ‘close to a deal’ . . . . This report is totally without foundation.” Sears, which put the tower up for sale in November, originally had no comment, explaining that it would be at least a month before the retailer could discuss any sale.

“There is nothing happening, no deal, no negotiations,” said Sears spokesman Ernest L. Arms. He said the company is compiling a financial analysis of the proposed sale of the building, which is expected to sell for at least $1.2 billion.

Sears has said it is selling the tower as part of its previously announced restructuring and it intends to vacate half of the 1.8 million square feet it occupies.

Reached at his Century City office after Sears’ statement was issued, Barthell said simply, “I concur with Sears.” He offered no further comment.

The Sears Tower has drawn interest from international investors, particularly from the cash-rich Japanese. Shuwa Investments Corp., which owns the Arco Towers, and Mitsui Fudosan have been mentioned as potential buyers.

Shuwa had no comment, according to Scott Tagliarino, a spokesman in Los Angeles.

Michio Uryu, president of Mitsui Fudosan in New York, said, “We have no interest in the Sears Tower.” He said that since Sears, the major tenant, plans to move out, the purchase would not make sense. “Secondly, it is the tallest building in the United States and there are so many articles that discuss Japan acquiring big buildings. We had no interest.”

Barthell’s statements about a single Japanese buyer drew a doubtful reaction from Cushman & Wakefield Inc., a real-estate firm that has represented Japanese buyers in other large commercial property transactions.

“I find it hard to believe that one client would risk $1.2 billion in one place on one property,” said John Oharenko, managing partner of Cushman & Wakefield’s Chicago office. “The deal is so large that you would probably have to have more than one source of capital.”