Onni Group’s hefty bet on renovating a Loop office tower continues to pay off, as it just secured a lease from a quantitative trading firm that’s doubling its Chicago footprint.
Aquatic Capital Management leased roughly 30,000 square feet on the 23rd floor of the 31-story building at 225 West Randolph Street, with plans to relocate from its 14,000-square-foot space at 1 North Wacker Drive, Crain’s reported.
The deal adds to a recent leasing streak for Canada-based Onni, which is in the midst of a $140 million overhaul of the 853,000-square-foot building, adding amenities and other upgrades to lure tenants. Onni is on the verge of locking down a trio of leases at the site, totalling nearly 140,000 square feet. If those deals are completed, they would fill roughly 16 percent of the vacant building.
Onni bought the building for $166 million in late 2021.
Office redevelopments have become increasingly common since the pandemic ignited the flight-to-quality trend, in which companies flock to updated, amenity-filled office properties to lure employees back to the office.
Aquatic’s decision to expand its Chicago footprint bucks the trend of companies reducing office space amid stubborn remote-work trends, which have contributed to record-high office vacancies in 12 of the last 14 quarters. Chicago’s vacancy rate exceeded 25 percent for the first time ever last quarter, according to CBRE.
Renovations of the building, which has been rebranded as The Bell, are slated for completion by early 2025. Onni has secured a Class L designation from Cook County, providing property tax incentives for developers renovating historic buildings. This advantage allows landlords to offer competitive rents, potentially attracting more tenants, the outlet said.
Meanwhile, Aquatic’s relocation poses challenges for Irvine Company, the owner of 1 North Wacker Drive, as tenants like Northwestern Mutual are also moving to The Bell. Yet, Irvine’s tower is still faring better than most Chicago office properties, as it’s 90 percent leased and recently secured leases, totaling 115,000 square feet, from a pair of law firms.
—Quinn Donoghue
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