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Citadel Center's Rebound Continues With Two High-Profile Leases

Citadel Center, 131 South Dearborn, Chicago
Citadel Center, 131 South Dearborn

Citadel Center's occupancy rate now stands at 90% after Hines Interests agreed to leases with two high-profile tenants, continuing a rebound for the 37-story Loop office tower since Hines and Angelo Gordon took over the property in 2016.

Citadel, the building's anchor tenant, agreed to a long-term lease extension and expanded it footprint in the building to 418K SF. Social media management tool company Sprout Social doubled its footprint to 128K SF. Other notable tenants include JPMorgan, liquor company Constellation Brands and law firms Holland & Knight and Perkins Coie.

Citadel Center was in danger of defaulting on its mortgage after law firm Seyfarth Shaw vacated its lease and net operating income dropped 40% between 2014 and 2016. Hines and Angelo Gordon took over Citadel Center with a $50M equity investment, were able to extend debt maturities on the property until 2020 and split the property's CMBS debt into two pieces. Ownership is in the middle of a $100M capital improvement plan that includes lobby and elevator renovations and construction of a new conference center.