Despite losing sole tenant, owners of South Loop office complex looking for buyers

The owners want $100M for the building at 801 South Canal Street that Northern Trust will leave next year
May 21, 2019 04:00PM

Paul Gearen and 801 South Canal Street (Credit: Google Maps)

Paul Gearen and 801 South Canal Street (Credit: Google Maps)

They’re about to lose the building’s only tenant, but the owners of the office complex at 801 South Canal Street are trying to sell the property anyway.

A venture led by developer Paul Gearen is hoping to sell the South Loop office building for $100 million, despite Northern Trust’s plans to vacate it next year, according to Crain’s.

Gearen and his partners developed the 575,000-square-foot building for Northern Trust in 1990. The Chicago-based financial institution has been the building’s sole occupant since then, according to Crain’s.

Northern Trust, one of Chicago’s biggest office tenants, will leave 801 South Canal Street in October 2020 as part of a reshuffling of its local office footprint. On top of leaving the South Loop, the firm will also vacate 248,000 square feet at 231 South LaSalle. It will consolidate its offices in 333 South Wabash Street.

Despite the building’s looming vacancy, Gearen and his partners are hoping to cash in on what has become a resurgent office market in the southwest corner of the central business district.

A block north of 801 South Canal, 601W Companies is preparing to open its redeveloped Old Main Post Office later this year. Also just north of the Northern Trust building is where Riverside Investment & Development’s 50-story office tower set is to rise near Union Station.

Companies are already showing an interest in the area even before the new deliveries. 601W recently announced the signing of four new tenants in its previously struggling office tower at 550 West Jackson Street.  [Crain’s] Joe Ward