Historic Chicago Office Building Gets $13 Million Overhaul

The owners of 25 East Washington Street are investing heavily in their long-held asset as many aging office buildings in downtown Chicago slide toward distress or residential conversions.

Amsterdam-based Kroonenberg Groep and Florida-based Trump Group (no relation to Donald Trump’s organization) have owned the 20-story, 389,600-square-foot Loop property since 1980. Now, through local manager Aspire Properties, the group is investing $13 million to upgrade amenities and reposition the 111-year-old Daniel Burnham-designed building as Class A “vintage,” CoStar reported.

The move comes as pre-1950s office buildings in the Loop face 35 percent vacancy, according to Aspire’s analysis of CoStar data, and as several peers have either handed keys to lenders or pursued residential conversion with city support. By contrast, 25 East Washington is 85 percent leased, with recent deals pushing vacancy down to 15 percent — well below the market average for older buildings.

“We’re outperforming our space just the way the trophy towers are outperforming the rest of the glass-and-steel towers,” Aspire Managing Principal Dan Shannon said.

The renovation, designed by Geniant Eastlake Studio, includes lowering a light well to give the seventh floor a 15,000-square-foot amenity center with a courtyard, lounge, game room, conference room and fitness center. Completion is slated for August.

Recent leases include a 10,000-square-foot expansion by ATS Institute, a 13,000-square-foot renewal by Contract Office Installations and deals with National Community Investment Fund for 4,600 square feet, Millennium Counseling Center for 3,500 and Gertie Enterprises for 3,000.

The building’s underground levels connect to the Chicago Pedway system and the adjacent Macy’s flagship, formerly Marshall Field’s. In 2019, ownership invested $10 million to build out 62,000 square feet for the School of the Art Institute of Chicago, now on a 15-year lease.

— Judah Duke