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Newark closing 65K sf office in West Loop
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Monroe Capital expanding in Loop relocation
Commercial lender one of three tenants leaving 311 South Wacker
A photo illustration of Monroe Capital CEO Theodore L. Koenig (Getty, Monroe Capital)
One Loop office building’s loss is another’s gain.
Commercial lender Monroe Capital plans to expand the footprint of its office space by 38 percent when it moves to 155 North Wacker Drive next year.
The firm will move north from 311 South Wacker and lease 40,000 square feet in the 46-story tower on North Wacker. The decision was a blow for 311 South Wacker landlords Zeller and Cindat Capital Management.
Two other major tenants at 311 South Wacker are planning to exit the 65-story building. Insurance company Attorneys’ Liability Assurance Society and financial services firm Mizuho Financial Group will also leave the building, creating a total of 87,000 square feet of vacant space.
The joint venture between Zeller and Cindat paid $302 million for the building in 2014 and has spent $38 million on renovations. If all three tenants exit as planned, the building’s occupancy rate would fall from just over 60 percent to below 50 percent, far less than the city average of roughly 76 percent. The property was 86 percent leased before the pandemic.
Representatives of Zeller and Cindat did not respond to requests for comment.
Although the South Wacker building has been pummeled by pandemic-induced drawbacks, interest in the North Wacker site, developed by the John Buck Company in 2009, indicates that not all hope is lost for the Loop.
“Monroe Capital sought a long-term solution for its headquarters that included relocating to a trophy asset that offered improved access to in-building and neighborhood amenities,” said John Goodman of Savills, who led lease negotiations for Monroe.
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Brandon Nasatir, Eric Feinberg and Isabel Schwartz were on the Savills tenant advisory team.
Monroe wasn’t the only tenant considering a larger footprint. Mizuho is also considering an expansion.
Attorneys’ Liability Assurance Society, however, was finalizing a 37,000-square-foot lease at 10 South Riverside Plaza, down from its 39,000-square-foot lease at 311 South Wacker.