Onni Group Attracts Golub Capital to Historic Chicago Building

Onni Group’s gamble on a historic Loop office building, incentivized by Cook County, scored a major endorsement.

Golub Capital is finalizing a lease for more than 200,000 square feet at The Bell, a recently renovated tower at 225 West Randolph Street, in one of the largest downtown relocations of the year, Crain’s reported.

The private credit firm would occupy seven floors in the 853,000 building’s low-rise section, increasing its space beyond the 180,000 square feet it leases across neighboring buildings at 100 and 150 South Wacker Drive.

Golub was represented by CBIZ Gibraltar’s Steve Joseph. Jack O’Brien and Matt Whipple of Chicago-based Telos Group oversee leasing at The Bell.

The deal would push The Bell to 85 percent leased, a win for developer Onni, which bought the tower in 2021 for $166 million ($195 per square foot) and invested another $140 million into renovations.

The move would mark a rare corporate shift into the Central Loop, where many financial tenants have exited in recent years. Golub Capital’s lease at 150 South Wacker runs through late 2028.

Founded in 1994, Golub Capital has grown to over 1,000 employees globally and has benefited from the boom in private credit as traditional banks pull back. The firm considered downsizing in 2023, putting part of its space on the sublease market. But it instead expanded with a sublease from Charles Schwab and is now looking to lock in long-term growth.

The move is another example of how well-capitalized landlords with updated space and incentive tools are managing to stay ahead in a bifurcated office market.

The Bell, a 31-story tower built as the Illinois Bell Building in 1966, was designated a city landmark in 2021. Its renovation was supported by Cook County’s Class L incentive program, which reduces property taxes for landlords who complete major overhauls of historic buildings. Onni has used the tax break to offer competitive rents and lure tenants away from newer but pricier buildings in the West Loop.

Other tenants at The Bell include Neal Gerber & Eisenberg, Troutman Pepper, Addison Group, Aquatic Capital Management and Northwestern Mutual.

— Judah Duke