Reschke, Primo Flip Former Cboe HQ to Data Center Developer

Two Chicago real estate firms just pulled off a rare Loop office flip with a hefty return.

A venture of Mike Reschke’s Prime Group and Quintin Primo’s Capri Investment Group sold the 385,000-square-foot former Cboe Global Markets headquarters at 400 South LaSalle Street for $40 million, or almost $104 per square foot — more than triple the $12 million they paid for it last year, or just $31 per square foot.

The buyer, Arlington, Virginia-based Legacy Investing, plans to transform the six-story property into a 33-megawatt data center slated to go online by late 2026, co-founder and managing partner Daniel English told CoStar News.

Prime and Capri bought the wide, concrete-and-steel building in July 2024 with an eye toward data center redevelopment. English credited the firms with significantly boosting the property’s value through early-phase work, including upgrades to power capacity — a desirable commodity nationwide.

“They played a critical role in assuring that the building has enough power,” English told the outlet. “There’s a shortage of power throughout the country right now. It’s a great partnership where they created value, and now we’re creating the next stage.”

Legacy, which specializes in data storage, logistics and life sciences real estate across the country, is betting that central locations like the Loop will play an increasing role in the next wave of data infrastructure. English said while most people think of data centers propping up only in “farm fields out in the middle of nowhere,” the proximity of power and connectivity in urban locations also provides applicable value.

The deal stands out in a market still struggling with record-high office vacancies and rising financing costs. While most downtown buildings are currently trading at steep discounts, Prime and Capri’s sale marks a rare profit-making turnaround, albeit with a new use in mind in an escape from workspace. The firms are also leading the $280 million overhaul of the Helmut Jahn-designed Thompson Center nearby, where Google plans to open a major new office.

Demand for data centers has exploded with the rise of artificial intelligence and cloud computing. JLL recently projected that developers could invest $1 trillion in North American data infrastructure by 2030.

— Eric Weilbacher