Kohan Retail Completes Heavily-Discounted Citadel Center buy

Kohan Retail Investment Group officially bought the former Citadel Center for $137 million.

New York-based Kohan specializes in turning around distressed properties, particularly shopping centers and malls, and they have their hands full with the 37-story, 1.5 million-square-foot Loop tower, which they entered into an agreement for in February.

Kohan’s founder and Principal Mike Kohan told Crain’s that the firm financed the acquisition with $65 million in debt. The debt money came from a venture of German bank BayernLB, who was the lender on a $448 million 2020 refinancing for the location. The $137 million figure is a steep drop from the debt refinancing. The sale price equates to about $91 per square foot.

Kohan has been shopping for Chicago discounts as of late. The firm bought 311 South Wacker Drive last year, and seized 33 West Monroe Street after buying the property’s $60 million loan. Closing on 131 South Dearborn Street brings their total of Chicago area office space purchases to three in around a year. The former Citadel Center was marketed for sale by Eastdil brokers Sam Byczek, Alex Caron and Bryan Rosenberg.

131 South Dearborn Street used to be named for its anchor tenant, Citadel, who bailed on the property in late 2025 for Miami. In February, when Kohan entered the agreement to buy the building, it sat at 45 percent vacant with an average lease term of 6.4 years. The downtown average was 28 percent, according to the outlet.

It has rebounded in recent months, securing a lease from consulting firm Bain & Company and JP Morgan Chase, temporarily expanding its presence to 321,000 square feet. The naming rights for the building and a private entrance are up for sale to any tenant who leases around 300,000 contiguous square feet.

Kohan told the publication that the firm is in talks with potential tenants interested in the building.

— Hunter Cooke