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 February 10.
ComEd Offers Benchmarking Assistance
The City of Chicago has published proposed rules concerning the Energy Benchmarking Ordinance that was passed last year. Public comments on the proposed rules are due by today, February 14. The text of the proposed rules can be found by clicking here.
ComEd has released resources that can help buildings set up their benchmarking data. The program offers qualified commercial office buildings no-cost benchmarking and consulting services aimed at helping participants set and continuously track progress towards energy performance improvement targets at their properties. The program is available to multi-tenant commercial office buildings eligible for ComEd Smart Ideas incentives.
A TOBY Success Story
The 2002 TOBY Award Winner for the Renovated Building category, 200 S. Michigan Ave., has been sold for $69 million or nearly $193 per square foot. Once known as the Borg-Warner Building, this 357,777 square-foot office tower was 89% occupied during the sale. An affiliate of Philadelphia-based Equus acquired the building in 2000 before completing a multimillion dollar renovation that included new elevators, lobbies, restrooms and two new restaurants.
Three First National Plaza for Sale
A Hong Kong-South Korean joint venture has put 70 W. Madison St., also known as Three First National Plaza, up for sale less than three years after purchasing the building for $344 million. According to people familiar with the property, the asking price for the 57-story tower could be between $345 million to $375 million. The tower is currently 88% leased, which is 4% less than the rate when it last sold.
Return of the Spire
Reports have surfaced that the Chicago spire building project may have been given a second life. Shelbourne North Water Street LP, the Irish real estate development company that originally planned to build the tower, stopped all development when it filed for bankruptcy several years ago. Now, with $135 million in new funding that is coming from Atlas Apartment Holdings, Shelbourne hopes to move forward with the 2,000-foot tower. If completed, the tower would be the tallest structure in the western hemisphere.
Legislature in Session
Two Senate bills on BOMA/Chicago’s radar are in the process of being filed. While these bills are not expected to progress any further, we will keep you abreast of any and all updates.
(1) Bill 5396 would mandate that the owner of commercial property must disclose his/her commission, in advance, to the tenant if the lease is a multi-year lease valued at over $10,000/yr. Further, the bill states that failure to disclose the fee could result in the owner paying the tenant up to three times the commission that was paid. BOMA/Chicago will oppose this legislation.
(2) The Solid Waste Agency of Lake County is proposing language that would impose fees and significant regulations upon retailers, manufacturers and distributors of PET/PTT-based recycled carpet. BOMA/Chicago believes that this would discourage the use of recycled carpeting products by adding to their costs. Many commercial buildings use recycled carpet products as part of their sustainability goals and to earn LEED points. BOMA/Chicago will also oppose this legislation if it is given consideration by the legislature.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.