Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of January 13.
Tishman Leaves LaSalle
Tishman Speyer Properties L.P. has hired Jones Lang LaSalle Inc. to sell 30 N. LaSalle St., a 983,000-square-foot office building in the Central Loop, for at least $235 million. The 43-story tower is currently the only major Class A building for sale in the market. In 2013, Tishman sold 161 N. Clark St. and 1 N. Franklin St. for about $513 million combined and acquired 190 S. LaSalle St. for $211 million.
Widespread Appeal for 10 N. Dearborn
Last week, we reported that Redico, a suburban Detroit real estate firm, paid nearly $11.5 million for 10 N. Dearborn St. After the sale, GlobeSt.com stated that the 80,228-square-foot tower attracted a lot of interest on a local, regional and international scale. Suzanne Martinez, principal with Avison Young’s capital markets group in Chicago, talked to GlobeSt.com about the widespread appeal of the building and how this potentially foreshadows a vibrant downtown office market in 2014.
Networking on Orleans
Networked Insights Inc., a Chicago software company, is the latest technology firm set to move to River North. Networked’s chief financial officer, Josh Damon, confirmed that the company has signed a 10-year lease for 26,385 square feet at 350 N. Orleans St. The firm currently resides in two buildings, 200 W. Adams St. and 175 W. Jackson Blvd., where it leases about the same amount of space.
Another Office Building Bites the Dust?
Former President and CEO of Strategic Hotels & Resorts Inc., Laurence Geller, is leading a venture to purchase the 20-story building at 101 E. Erie St. Given the Magnificent Mile location of the 227,600-square-foot office tower, along with the anchor tenant, DraftFCB, moving out, there is speculation that Geller will transform the tower into a hotel. Many office towers have recently been slated to become hotels, including the former Crain Communications Building at 360 N. Michigan Ave., the Virgin Hotel, at 203 N. Wabash Ave. and a new Residence Inn by Marriott at 11 S. LaSalle St.
CRE Transactions on the Rise
According to the 2013 Q4 report released by the CCIM Institute, 60% of the CCIM national membership indicated that they experienced more transactions in Q4 than the same period the prior year. In the 4Q13 Quarterly Market Trends report, 64% of members saw greater deal flow in the office sector and claim they are receiving more serious inquiries related to buying commercial real estate. The complete report can be found by clicking here.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.