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 July 21.
High Profit Expected for Low Occupancy Tower
Golub & Co. and Archon Group L.P. have placed the 15-story tower at 311 W. Monroe St. up for sale just months before BMO Harris Bank vacates most of the building. The tower is expected to fetch $50 million or more despite the fact that vacancy will rise to 82% when BMO Harris moves out of 250,000 square feet in December. Golub and Archon paid $44 million two years ago for 311 W. Monroe.
Underlying Value on Wacker
A venture of Howard Hughes Corp. has paid $12.3 million for the 43,000 square foot parcel underneath the building at 110 N. Wacker Drive, the headquarters of General Growth Properties Inc. Howard Hughes reportedly plans to redevelop the property, a move which is more likely now that the company owns both the building and the land the building sits on.
More Meatpacking Purchases for Sterling
Sterling Bay Cos. has purchased a 13,000 square foot building at 172 N. Ada St., formerly owned by Takis Royal Foods Inc., for $3.85 million. Sterling Bay now owns more than two dozen buildings in Chicago’s meatpacking district, a neighborhood that is losing more and more meatpacking, food wholesalers and cold storage companies as the property values rise.
Hearn Boots Occupancy on Monroe
Walker Sands Communications has signed a 10,000 square foot lease at 55 W. Monroe St., a tower owned by Chicago-based Hearn Co. The tech public relations firm will vacate its 8,000 square foot space at 121 N. Jefferson St. next month for the Monroe Street office, where the company will be able to house its 45-person staff on one floor. The new lease is for seven years and will bring the occupancy rate at 55 W. Monroe to 92%.
Retrofit Chicago Update
Earlier this week, Mayor Rahm Emanuel announced the further expansion of Retrofit Chicago’s Commercial Buildings Initiative. The new building participants, which include 11 higher education facilities, four commercial office buildings, and one cultural institution, have committed to at least 20% energy efficiency improvement within five years. With the addition of these buildings, the total program reach is now 48 buildings and 37 million square feet. This makes Retrofit Chicago’s Commercial Buildings Initiative one of the largest private sector voluntary efficiency programs in the country.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.