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Commercial
Chicago

Citadel renews lease at namesake building as Sprout Social doubles its space

The two tenants will fill a third of the tower owned by Hines and Angelo Gordon

Citadel Center, 131 South Dearborn Street (Credit: telosgroupllc)
Citadel Center, 131 South Dearborn Street (Credit: telosgroupllc)

Hines and Angelo Gordon have inked investment firm Citadel and Sprout Social to new leases that account for a large chunk of space at the Citadel Center.

Citadel has renewed its long-term lease for 400,000 square feet in its namesake 1.5 million-square-foot tower, according to Crain’s, citing a quarterly office report from CBRE.

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In addition, social media management tool company Sprout Social signed a lease doubling its space to 128,000 square feet, making it the fourth largest tenant in the building. Add in a recent 15-year lease by Constellation Brands for 132,000 square feet and other major tenants including JP Morgan, and the building is now 89 percent leased, according to Crain’s.

Houston-based Hines and New York-based Angelo Gordon took a controlling stake in the tower in 2016 as it was on the verge of defaulting on its mortgage. The companies were able to reduce the building’s vacancy rate and restructure its debt and now are launching a $100 million capital improvement project at the building. [Crain’s] — John O’Brien

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Commercial Real EstateDowntownHinesOffice Market