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 24.
Victorious Streak for TOBY Winner
Soon after losing the headquarters of a Fortune 500 company, United Airlines, 77 W. Wacker Drive has secured a lease with Archer Daniels Midland Co. ADM is currently the largest company in Illinois by revenue and will lease 45,827 square feet on the 46th and 47th floors of the 51-story tower. 77 West Wacker Drive, managed by Jones Lang LaSalle, recently won The Outstanding Building of the Year Award (TOBY) for the 500,000 – One Million Square Feet Category.
Large Loan for Thompson Building
A venture of Chicago-based Friedman Properties Ltd. has taken out a $25.6 million mortgage on the John R. Thompson Building, located at 350 N. Clark St. This loan is 45% more than a $17.8 million loan on the property that was paid off by Friedman last August. According to real estate data provider CoStar Group Inc., Friedman has leased the entire building – a 113,800-square-foot office property.
Hotel Burnham Switches Hands
Hotel Burnham was recently part of a $2.6 billion portfolio sale by CWCapital Asset Management LLC. CWCapital, which repossessed Hotel Burnham along with four other Chicago-area office properties after the recession, sold the building for about 70 cents on the dollar. The buildings were sold to four investors that specialize in turning around troubled real estate properties.
Goodbye Sears, Hello CPS!
Chicago Public Schools will be relocating its headquarters to 1 N. Dearborn St., the current location of the Sears department store. Sears will be vacating its retail space in April 2014. CPS has signed a lease with MB Real Estate that begins in November 2014 for a portion of the ground floor and the entirety of the lower level, 2nd and 3rd floors of the building. By vacating its current headquarters at 125. S. Clark Street for the new Dearborn location, CPS claims it will save $60 million over the next 15 years.
BOMA/Chicago Launches Security Best Practices Library
The BOMA/Chicago Security Committee has completed an initial Security Best Practices Library for BOMA/Chicago members. The goal of the project was to develop documents that would transition well into the policy and procedure work already completed. Each document addresses a security or life safety situation commonly faced in commercial office buildings that can be considered when drafting site-specific response plans. Each can be customized depending on the characteristics and circumstances of an individual building. Click here to view the best practices information and options to consider on eight different topics.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.