AmTrust RE Secures Tenants at Renovated Chicago Office Asset

AmTrust RE’s office building renovations started to pay off recently, as it scored two new tenants and renewed three in a vacancy-plagued market.

The firm owns 1 East Wacker and recently completed extensive renovations in hopes of luring tenants. It spent $50 million on renovations across 1 East Wacker Drive and 33 North Dearborn Street.

So far AmTrust’s renovations have helped secure at least five tenants at One East Wacker. Fintech company Aeropay and a nonprofit, The Lawyer’s Trust Fund of Illinois, recently signed leases in the building totalling 17,500 square feet.

The gains at 1 East Wacker are losses for other landlords down the road. Aeropay is leaving Ameritus and Madison International’s 121 West Waker Drive, where it had a smaller lease. The Lawyers Trust Fund is leaving 65 East Wacker Place, a 24-story building that Mavrek Development and Acres Commercial Realty plan to convert to 200 apartments.

Meanwhile, AmTrust secured lease renewals with business services nonprofit the Japan Trade Organization, law firm Gair, Gallo and Eberhard, and real estate consultancy ECD Company. The renewals total 18,700 square feet, including an expansion of the law firm’s space.

Stream Realty Partners represented AmTrust RE in all five transactions. Paul Reaumond and Tyler Reaumond of CBRE represented Aeropay, and Boris Yelyashov and Kyle Robbins of Transwestern represented the Japan Trade Organization.

The 41-story, 560,000-square-foot office tower overlooking the riverwalk is part of AmTrust RE’s seven-property portfolio in Chicago. The company is planning to spend another $50 million to overhaul the portfolio. At 1 East Wacker, the improvements included an updated lobby, amenities spaces and a lounge.

But it hasn’t been all smooth sailing for the New York-based landlord. AmTrust RE was hit with a foreclosure lawsuit in November by Starwood’s special servicer LNR Partners alleging the property owner defaulted on its $260 million loan for the office buildings at 111 East Wacker Drive, also known as One Illinois Center, and 233 North Michigan Avenue.

The company also owns office buildings in New York, Phoenix and Tampa.

Leasing activity picked up in Chicago in the first quarter, particularly among Class A office buildings. The quarter was the second most active for office leasing since the pandemic began, and nine of the 10 largest leases were for Class A buildings, according to Savills.

Editor’s note: this post has been updated to correct AmTrust RE’s corporate structure.