Office listings in a time of vacancy

Pair of North LaSalle Street towers hit Chicago market in crisis

Chicago /
May.May 05, 2021 04:15 PM
2 N. LaSalle Street and 100 N. LaSalle Street (Google Maps)

2 N. LaSalle Street and 100 N. LaSalle Street (Google Maps)

Vornado Realty Trust’s Steve Roth lamented the dearth of distress investment deals in the market during the company’s quarterly earnings call Tuesday.

While those cut-rate prices may not exist, in Chicago’s battered office market, opportunity abounds.

Another two office buildings hit the market, both on North LaSalle Street, Crain’s reported. The listings come at a time when the office vacancy rate in the first quarter hit 16.1 percent, a level not seen in 15 years.

Fortress Investment Group and Hearn are selling the 700,000-square-foot 2 North LaSalle Street, and BentallGreenOak is listing its 160,000-square-foot 100 North LaSalle Street, the publication noted.

JLL is marketing the 26-story 2 North LaSalle, with the owners eyeing $200 million. Chicago-based Hearn partnered with New York-based Fortress in 2016 to recapitalize the Harbor Group-owned building with a $42 million investment. Three years later, the City of Chicago consolidated offices into 2 North LaSalle, where it took 222,000 square feet.

Cushman & Wakefield has been tapped to sell 100 North LaSalle, which BentallGreenOak acquired from Hearn in 2016 for $32 million. The listing price is in the range of $20 million, according to the report. The nearly century-old building is 60 percent leased.

Other office buildings have hit the market in recent weeks. Late last month, American Realty Advisors listed its 520,000-square-foot Fulton Market complex that serves as Google’s Midwest headquarters. It was asking around $360 million for the property, according to reports.

And Missner Group has nixed a planned West Loop warehouse conversion, choosing instead to list the 115,000-square-foot building.

[Crain’s] — Alexi Friedman 


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