Cushman HQ Hits the Market in Downtown Chicago

Cushman & Wakefield’s global headquarters building overlooking the Chicago River is up for grabs, setting the stage for a closely watched test of investor demand for high-quality Loop office towers.

San Francisco-based Spear Street Capital tapped brokers from Cushman & Wakefield to market the 31-story office tower at 225 West Wacker Drive, according to a brochure. CoStar reported that the offering comes as Chicago’s central business district continues to digest years of distress, discounted trades and stubborn vacancy.

Unlike many recent downtown sales, the 650,812-square-foot tower isn’t a turnaround story. Built in 1989, the property is 86 percent leased with a weighted average lease term of 6.5 years. Marketing materials highlight extensive upgrades completed since 2020, including improvements to the lobby, amenities, common areas and building systems. The average tenant occupies about 18,050 square feet, and the building includes 233 parking spaces.

Spear Street bought the property in May 2020 for $210 million, just as the pandemic was upending office markets nationwide. Two months later, it secured a $158.1 million loan from RBC Real Estate, according to Cook County records. The debt was modified in 2023 and paid down to roughly $143.1 million. A person familiar with the building told the outlet that it could trade for close to that remaining balance, a far cry from the deep discounts attached to many recent Loop office deals.

The tower’s largest tenant is Cushman itself, which leases just over 83,000 square feet, according to CoStar data. Landing a buyer at or near the debt figure would signal that capital is still chasing stabilized, well-located properties, even as older, vacancy-plagued buildings struggle to find a floor.

The sale also arrives as Spear Street grapples with turbulence elsewhere in its Chicago portfolio. The firm allegedly defaulted on a $270 million loan tied to the 46-story tower at 500 West Monroe Street, and lender JPMorgan Chase has been marketing the debt for sale since November. Spear Street paid $412 million in 2019 for the building.

— Eric Weilbacher