Ameritus Lists Chicago Office Tower Amid Debt Pressure

Another prominent downtown Chicago office building is hitting the market — this time just steps from Google’s future home at the James R. Thompson Center — and debt maturity is at play.

Chicago-based Ameritus listed the office portion of 121 West Wacker Drive for sale, Crain’s reported, citing marketing materials from Cushman & Wakefield. Brokers Tom Sitz and Cody Hundertmark are leading the campaign to find a buyer for the 41-story, 426,000-square-foot property.

Ameritus refinanced it in early 2022 with a $71.3 million loan from German lender Deutsche Pfandbriefbank. That loan has since matured, and sources told the outlet that the parties are working on a potential sale to resolve the debt.

Ameritus Partner Jeb Scherb said the firm could pursue a recapitalization if a new investor comes aboard.

The Art Deco building — completed in 1929 and updated by Sterling Bay before Ameritus bought it for $118.5 million in 2018 — is now valued well below its last trade, given the punishing drop in downtown office demand and higher borrowing costs that have chilled investment activity.

The property’s proximity to the redeveloped Riverwalk and Google’s $280 million Thompson Center overhaul are catalysts for future leasing momentum, according to marketing materials.

Still, any buyer would be wading into choppy waters. The tower is just 63 percent leased, below the roughly 72 percent average across downtown Chicago, and far off the 90 percent occupancy rate it boasted when Ameritus took ownership.

The listing adds to the growing list of downtown towers under stress as hybrid work reshapes the office landscape. Many landlords are working with lenders on discounted payoffs or joint sales as loans mature and valuations sink. Some buyers have swooped in to reposition buildings through new capital and leasing pushes, while others are content to wait for the market to stabilize before reinvesting.

Ameritus’ timing may also reflect its lender’s shifting priorities. PBB announced in June that it plans to wind down its U.S. operations and refocus on European markets. A sale of 121 West Wacker could untether it from one of its last stateside positions: a well-maintained, riverfront asset surrounded by billions in new investment that could rebound faster than many of its distressed peers.

— Eric Weilbacher