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 March 24.
High Profits Despite Low Occupancy
Lincoln Property Co. and investment manager PIMCO plan to place 230 W. Monroe St. on the market. Despite the building’s 67% occupancy rate, the 29-story office tower is expected to earn about $200 per square foot, or nearly $125 million. Lincoln Property and PIMCO purchased 230 W. Monroe in August 2012 for $91.3 million when the building was 90% leased.
JLL Wins Big at GCFD CRE Dinner
The 26th Annual Chicago Commercial Real Estate Awards Dinner, hosted by the Greater Chicago Food Depository (GCFD), was held on Thursday, March 20. JLL won three awards at the dinner, including Office Broker of the Year, Project Manager of the Year and Project Management Company of the Year. Broadcaster Corey McPherrin of WFLD-TV/Channel 32 hosted the event at the Hilton Chicago, where more than $1 million was raised for the GCFD. Click here to see the full list of winners.
Other Tech Businesses to Replace Google
Chicago-based Sittercity Inc. and a local startup, Modest Inc., will collectively lease about 24,000 square feet at 20 W. Kinzie St. These two leases will keep the building’s vacancy rate at 5%. Google currently resides in this building, but the firm will be moving to 1000 W. Fulton St. within the next year.
Florida Investor Buys Monroe Property
Beacon Investment Properties LLC, a Florida-based investor, has purchased the 535,911 square foot office tower at 200 W. Monroe for $100 million, or $187 per square foot. The sellers, Farbman Group and Lubert-Adler Partners L.P., paid $75 million for the building in July 2012. The sale does not include 113,354 square feet owned by the Jewish Federation of Metropolitan Chicago.
Walgreens Moving to Thompson Center
Walgreen Co. has announced plans to close its 8,000 square foot store at 240 W. Randolph St., where John Buck plans to build a 36-story office tower. Walgreens will be relocating this store a few blocks away to the James R. Thompson Center. The 11,000-square-foot store will open along the Randolph Street side of the Thompson Center, filling some of the space by the now closed Dress Barn. Walgreens signed a lease with the Marc Realty LLC and Boston-based Winthrop Realty Trust venture that controls the Atrium Mall retail space 100 W. Randolph St.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.