Beacon Capital’s Loop Office Tower Renovation Draws Tenants

After its $125 million purchase last year, the buyers of a 36-story office tower overlooking the Chicago River completed $32 million in renovations to the building, pleasing the building’s main tenant and drawing in more leases.

Even when adding in the renovation costs, Beacon Capital Partners bought back the building for a steal compared to its sale price 20 years earlier. Chicago developer John Buck and Beacon sold the tower at 333 West Wacker Drive for $208 million, or $232 per square foot, in 2004, CoStar reported. The building sold during a peak market in 2015 to the AFL-CIO pension fund, which paid $320.5 million, or $358 per square foot. Allianz Life Insurance issued $156 million in debt to the previous owner, and according to Cook County property records, the Beacon purchase is backed by new debt from Allianz, up to $185 million, or $207 per square foot.

Before even finishing the upgrades, new leases began rolling in, increasing the occupancy rate of the building from 83 percent when purchased in June 2024 to 90 percent today.

The building’s marquee tenant, Nuveen, required Beacon to invest in the renovations as part of its purchase agreement in order to secure the long-term lease extension Nuveen inked with the building’s prior owner.

Amenities added to the 895,000-square-foot tower — built in 1982 and designed by Kohn Pedersen Fox — include a modernized lobby, outdoor terrace, ground-floor cafe, rooftop tenant lounge and a conference center with views of the Chicago skyline.

In March, the food and beverage tech firm JBT Marel left a Loop office building for 333 West Wacker, leasing more than 27,000 square feet. Forvis Mazars and Eclipse Business Capital have also recently leased 22,000-square-feet and 15,000-square-feet in the building.

The investment in the downtown office is part of an emerging pattern for Beacon, chasing long term leases with large investments in renovating older towers. In February, Beacon inked a 38,500-square-foot, 15-year lease at 1 Dearborn Street for the Chicago-based childhood education-focused nonprofit Start Early.

— Eric Weilbacher

Commercial

Chicago

Beacon Capital Partners scores tenant in renovated Loop asset