East Coast investors buy West Loop loft office space for $15M

Two New York-area firms paid double what the property was bought for in 2014

Shlomo Chopp and the building
Shlomo Chopp and the building

A pair of New York-area property investors have placed a big bet on the West Loop after buying up a loft-style office building in the hot neighborhood.

New York-based Case Equity Partners and New Jersey-based Lexington Realty International bought the seven-story building at 1033 West Van Buren Street for $15.1 million, according to Crain’s.

That’s twice as much as the $7.5 million Columbus, Ohio-based developer Pizzuti Companies paid for the property in 2014.

The deal is Case Equity’s first venture into the Chicago office market. Shlomo Chopp, the firm’s managing partner, told Crain’s the company is betting the West Loop will continue to grow and will look at other investment opportunities there.

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The West Loop and nearby Fulton Market have seen significant investment in both the residential and commercial markets this year.
Recently, Related Midwest won initial approval to build a 52-floor hotel-apartment tower at 725 West Randolph Street, which will be the tallest building west of the Kennedy Expressway.

Sterling Bay, one of West Loop’s most active developers, in April secured a $181 million construction loan to build a 19-story office building for Wells Fargo at 333 North Green Street. And in June, Mark Goodman & Associates announced plans for a 12-story office building near the new Fulton Market headquarters of McDonald’s and Google.

Vacancy at the building on Van Buren Street stands at 35 percent, which is much higher than the 13 percent average for Downtown, according to Crain’s. The new developers said they will invest $4 million into the building, including upgrades to its lobby and elevators [Crain’s] — Joe Ward