Mike Reschke Tees Up Latest Loop Bargain

Mike Reschke is doubling down on Helmut-Jahn designed buildings in Chicago’s Loop.

Prime Group, Reschke’s Chicago-based company, has struck a deal to buy the 40-story office tower at 55 West Monroe Street, according to CoStar. The outlet reports that the financial terms for the deal are around $25 million, a colossal price cut from the $243 million that seller Manulife paid for the building in 2014. The 815,000-square-foot building was devastated by the remote work push during the pandemic, and now sits at more than 80 percent vacant.

At a time when office space in the Loop is in low demand, Reschke is betting mixed-use developments are key to keeping Chicago’s business district alive. He recently completed a purchase of the Burnham Center out of financial distress for $16 million and plans to turn a section of the historic property at 111 West Washington Street into between 250 and 300 hotel rooms.

The Monroe Street property could also become a mix of office, residential and hotel space in the future, though no specific proposal has been put forward at this point. “We’re not sure yet. For now, we’re just focused on maintaining it as a Class A office building,” Reshcke told the outlet.

Manulife was represented by JLL brokers Jaime Fink, Bruce Miller, and Sam DiFrancesca in the sale.

Reschke is also helping head up the redevelopment of the Thompson Center for Google, in partnership with Quintin Primo’s Capri Investment Group. The Chicago landmark will serve as Google’s Midwest headquarters when construction is completed on the 1.2 million square foot tower in 2027, and will also act as a landlord for portions of the space. Google is also set to sign billionaire Joe Mansueto’s financial research firm Morningstar as a tenant when the facility opens.

A similar Reschke-and-Capri-helmed in the Loop, at 111 West Monroe Street, known as the former BMO Harris bank offices, is being partially converted into apartments and hotel rooms. Prime and Capri are backed by $40 million in tax increment financing commitments from the city to help inject new investment into the area, and recently also sought a $50 million loan from the local TIF district to jumpstart the project.

— Hunter Cooke