Leasing Near Thompson Center On The Rise: The Chicago Deal Sheet
Even before renovations are complete at the Thompson Center, the impact of Google's impending move is already showing up in some leasing figures.
Since Google announced its plans to purchase the renovated building in 2022, leasing volume is up 14% in the LaSalle Corridor and up 23% within a half-mile radius of the building, Bloomberg reported. The performance is significantly better than the overall Central Loop, which has seen office leasing volume fall 13% in the same period.
It's unclear how much space the company will take in the new building, but Google handed over office leasing to CBRE and its retail leasing to Savills in March. The tech company anticipates the build-out of the interior to last into 2027 and plans to move employees into its new Chicago headquarters later that year.
JPMorgan Chase's renovation of its tower a few blocks away from the Thompson Center is also expected to help boost an area that has struggled with office vacancy in the wake of the pandemic.
PEOPLE
Greenstone Partners promoted Jordan Multack to partner. He will focus on expanding multifamily investment sales throughout the Chicago area.
SALES
R.I.G. Capital paid $167M for The Pavilion, a 15-story, 1,115-unit multifamily high-rise at 5441 N. East River Road in O’Hare, buying it off of Brookfield Asset Management. The group secured a $125.2M loan from Eastern Union to finance the deal, which is one of the largest in Chicago this year. The property was 96% occupied at the time of sale. Eastern Union's Michael Muller and Mike Orlik secured the loan.
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Mike Reschke's Prime Group is under contract to pick up the 40-story office building at 55 W. Monroe St. at a purchase price that could be a 90% discount from the last time the building traded in 2014. Sources familiar with the deal told Crain's Chicago Business that recent bids on the property were at about $25M, a stark drop-off from the $243M an affiliate of Manulife Financial paid for the building over a decade ago. The building is just 19% leased and could be a candidate for a conversion.
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The Missner Group acquired 657 Wolverine Drive, a 58K SF multitenant industrial property in Aurora, for an undisclosed price. The company plans to implement a value-add strategy, including tenant build-outs, renovation of office space and structural improvements to the building. Cawley CRE's Andrew Maletich represented The Missner Group, while NAI Hiffman's Steve Connolly and Mark Moran represented the undisclosed seller.
LEASES
Fromm International signed a 73K SF industrial lease at Algonquin Corporate Center in Algonquin. The company will occupy space within Building 1 of the five-building complex constructed in 2022. Newmark's Adam Marshall, Mark Deady, Cooper Weisman and Dylan Weisman represented Fromm in the deal. CBRE's John Hamilton and Mike Sedjo and Stream Realty's Ben Dickey represented landlord NorthPoint Development.
CONSTRUCTION AND DEVELOPMENT
Trammell Crow Co. broke ground on Building 2 of Plainfield Business Center in Plainfield. The 788K SF speculative warehouse is scheduled to deliver by the third quarter of 2027. The first building in the development delivered in 2026 and is fully leased to RJW Logistics Group.
