JLL has been retained by trustee and special servicer LNR to market one of the rarest value-add investment opportunities in the country for sale in Chicago.
The iconic 30-story office tower, 123 North Wacker Drive, is currently 58 percent leased and occupancy is expected to drop further with one of its largest tenants, Morton Salt, lease expires in 2021.
With the downtown Chicago vacancy rate at a 15-year low, investors will be presented the opportunity to lease up the building’s large, contiguous blocks of space along the city’s most coveted address that’s not found anywhere else in the Central Business District (CBD). The contiguous blocks allow for multiple value creation opportunities, including a partial conversion to high-end hospitality space.
International Director Bruce Miller and Executive Vice President Nooshin Felsenthal are leading the JLL team’s marketing efforts.
“This is truly a unique investment opportunity unlike anything else being offered in not only Chicago, but the entire nation,” Miller said. “It is extremely rare to find such a prominently located, iconic asset that allows a buyer to capitalize on returns through multiple value-add channels such as extending the retail footprint, to creating an unrivaled amenity package including outdoor rooftops and ultimately leasing up large contiguous blocks not seen in other assets this size.”
Chicago’s West Loop submarket has become a go-to destination for large corporate occupiers looking to relocate from the suburbs to the CBD as it offers unparalleled access to public transit such as CTA train stations and Metra service at Ogilvie Transportation Center and Union Station.
“With the value-add opportunities and 123 North Wacker’s discount compared to other assets with such prominent locations, we expect this asset to be very compelling for both domestic and foreign investors,” said Felsenthal.
The 541,000-square-foot office tower features views of the Chicago River and offers flexible, column-free, light and air-filled space for tenants. The property was designed by Perkins and Will and delivered in 1986.