The Real Deal Chicago

Dentsu Aegis Network expands to 126K sf at River North office building

Beacon Capital and Ivanhoe work to shrink big vacancy at their 515 North State property
By John O’Brien | February 27, 2019 01:00PM

From left: Ivanhoe Cambridge CEO Dan Fournier, Dentsu Aegis CEO Tim Andree, and Beacon Capital’s Alan Leventhal with pictures of the 515 North State property

Dentsu Aegis Network has doubled its space at a River North office building, bringing its total footprint there to 126,000 square feet.

The London-based global marketing firm signed the lease expansion for the additional 68,000 square feet at 515 North State Street with building owners Beacon Capital Partners and Ivanhoe Cambridge. The firms announced the deal Wednesday. Dentsu Aegis now occupies six floors of the 29-story building.

Jack O’Brien and Jamey Dix of The Telos Group represented the Beacon Capital and Ivanhoe Cambridge in the lease negotiation with Dentsu Aegis. Steve Schneider, Adam Ardise and Justin Baratz of Cushman & Wakefield represented Dentsu Aegis.

Boston-based Beacon Capital and Montreal-based Ivanhoe Cambridge last year signed WeWork to a 122,000-square-foot lease in the same building, one of two River North WeWork leases that helped steady the Downtown office market in the third quarter.

In December 2017, scandal-plagued Outcome Health backed out of its 17-floor lease at 515 North State, vacating 394,000 square feet. The building owners recently completed extensive capital improvements at the property. Those include a modernized lobby and updated tenant amenities.

Last year, Beacon Capital closed on the 28-story One Illinois Center tower, paying $182 million, which followed its $163 million purchase of the 20-story tower at 231 South Lasalle Street.

Ivanhoe Cambridge acquired its investment partner of six years, Chicago-based Callahan Capital Properties, last year. Ivanhoe is the real estate investment subsidiary of Quebec’s public pension fund manager, Caisse de dépôt et placement du Québec.