Alter Group selling home of WeWork’s Chicago flagship, asking $130M

The 17-story office building at 20 W. Kinzie Street includes a 175K sf location for the co-working giant

Chicago /
Oct.October 31, 2018 12:21 PM

Alter Group President Michael Alter (orange) and WeWork CEO Adam Neumann (green)and 20 West Kinzie Street (Credit: 20westkinzie, Getty Images, and WNBA)

Alter Group is asking $130 million for its River North office building that’s anchored by WeWork’s flagship Chicago location.

The Wilmette-based developer is selling the seven-story, 385,000-square-foot building at 20 West Kinzie Street, continuing a sell-off strategy it embarked on four years ago.

President Michael Alter, who’s also an owner of the WNBA’s Chicago Sky, said in 2014 the firm would sell off its nearly 3 million-square-foot nationwide portfolio and form joint ventures on new projects as the company planned its future, Crain’s reported at the time.

Scott Latter of Entrust Realty is the listing agent for 20 West Kinzie, where WeWork occupies 175,000 square feet of space, making it the building’s largest tenant.

WeWork in June added a sixth floor to its lease in the building, just before the co-working giant announced an expansion into two more locations of more than 200,000 square feet in River North buildings owned by Beacon Capital Partners. That deal saw WeWork take five floors at 515 State Street and two floors of the AMA Plaza building at 330 North Wabash Avenue.

Alter in 2015 sold the home of another WeWork location, 111 West Illinois Street, to Munich-based GLL Partners for $75 million, according to Crain’s.

The building at 20 West Kinzie once was Google’s Chicago home until it moved into a new headquarters in Fulton Market developed by Sterling Bay. The first six floors of the building are occupied by the 215-key Kinzie Hotel, which is owned by Bixby Bridge Capital.

The building would be the second WeWork-occupied building to sell recently, after German investor Commerz Real bought the National building at 125 South Clark Street from Blue Star Properties for $202 million.


Related Articles

arrow_forward_ios
From left: DL3 Realty’s Leon Walker, Discover’s Roger Hochschild, Mayor Lori Lightfoot, and 8560 South Cottage Grove Avenue. (DL3, Discover, Getty, Google Maps)
DL3 Realty signs Discover to big South Side lease
DL3 Realty signs Discover to big South Side lease
Hotel Felix and Holiday Inn Express Chicago - Magnificent Mile. (Hotel Felix, Hotel Cass)
Two more Chicago hotels face foreclosure
Two more Chicago hotels face foreclosure
Blackstone’s Jonathan Gray and CenterPoint CIO Jim Clewlow with one of the properties, 225 Spring Lake Drive, Itasca (Getty, Linkedin, Google Maps)
Blackstone expands industrial reach with $151M Chicago buy
Blackstone expands industrial reach with $151M Chicago buy
(Arlington Park, Google Maps)
Churchill Downs looks to sell 326-acre Arlington Park race track
Churchill Downs looks to sell 326-acre Arlington Park race track
Chicago this week raised indoor dining to 40% of a venue's capacity. (iStock)
Filling up: Chicago boosts indoor dining capacity
Filling up: Chicago boosts indoor dining capacity
Photo illustration of the Silver Lake Country Club (Silver Lake CC, iStock/Illustration by Kevin Rebong for TRD)
Orland Park golf club hits market as residential redevelopment
Orland Park golf club hits market as residential redevelopment
Sterling Bay CEO Andy Gloor and Prudential Plaza (Getty)
Sterling Bay sues Tribune over $5M in skipped rent
Sterling Bay sues Tribune over $5M in skipped rent
Berkadia CEO Justin Wheeler with Moran & Co.'s Tom Moran (Getty)
Berkadia picks up longtime multifamily brokerage
Berkadia picks up longtime multifamily brokerage
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...