Vornado looks to sell parcel near Chicago River

Someone other than Vornado Realty Trust will get a chance to develop a Windy City parcel near the Chicago River.

The New York-based real estate investment trust has recently put up for sale the prime parcel at 527 W. Kinzie Street, which it has owned since 1998, CoStar reported.

The land was initially earmarked for a 288-unit apartment tower, but plans have shifted, leading to its current listing. 

The history of the site is intertwined with the larger narrative of the Chicago River area’s development. Originally part of the Kennedy family’s holdings, the area has seen significant transformation, with Vornado’s ownership of the Merchandise Mart shaping the neighborhood’s commercial landscape.

The decision to sell comes amid Vornado’s efforts to divest non-core assets and reduce debt.

Vornado is represented by CBRE brokers Tom Svoboda and Blake Johnson, the outlet reported.

The property, which is in the Fulton River District, boasts a strategic location near the bustling Loop business district, River North, and the Fulton Market area. 

Its proximity to the river — dye it green on St. Patrick’s Day — and Kinzie Park adds to its appeal, with potential views of the surrounding area.

Vornado’s decision to sell the site has raised questions about the company’s plans for the area.

The company is grappling with an increase in vacancy rates at the iconic Merchandise Mart, a property it has heavily invested in over the years. It’s dropped at least $100 million in renovations on the property in the past seven years.

In an office downsize, Interpublic Group — considered one of the “big four” advertising, marketing and public relations companies — is nearing a deal to occupy between 70,000 and 80,000 square feet in the 25-story building.

It’s the latest example of companies favoring newly built or recently renovated office space to overcome the remote-work era and attract workers back to the office. Thus, a slew of office landlords throughout Chicago have invested gobs of money to meet the growing demand for amenity-filled and updated buildings.

— Ted Glanzer