Menashe Properties Closes On Third Chicago Office Deal
Menashe Properties officially closed a deal for its third Chicago office purchase since 2023 with the acquisition of 180 N. LaSalle, a 38-story, 786K SF office tower in the Central Loop.
The official purchase price wasn't disclosed, but previous reports suggest the company paid between $55M and $60M for the property. The price range represents a significant discount from the $198.5M it cost La Caisse to acquire the building 10 years ago.
CEO Jordan Menashe told Bisnow that the building is about 60% leased, with strong in-place cash flow that provides the company with the cushion to build spec suites and pursue leases. He said the company is looking for tenants between 2K SF and 22K SF and has already drawn up plans for 10 spec suites.
The company plans to deliver its first "tranche" of spec suites within 180 days, Menashe said. It will also invest in improving the building's amenities and lobby.
"My goal is to listen to what the building wants to be and to build momentum as fast as possible," he said. "I want to put a big sign that says we're open for business, and there is spaces that can lease."
Menashe Properties has been one of the most active office investors in the city following the pandemic, as capital has largely stayed away from the asset class.
Last November, Menashe picked up 125 S. Wacker Drive, a 640K SF Class-A office tower in the West Loop, for $51.5M. That deal came two years after Menashe's 2023 purchase of the 623K SF property at 230 W. Monroe St., which made Menashe the first investor to buy an office building in the city in more than a year.
Menashe said he feels comfortable operating within the size range of the Chicago buildings he has acquired.
"They're all less than a million square feet," Mensashe said. "They're sizable enough, but they're not so big that we can't handle them and digest them and put our arms around them and hug them and kiss them."
Menashe said he wants to position the three buildings so that tenants feel they get good value for what they are paying. He said he expects the impact of Google's upcoming move to the Thompson Center to help drive additional leasing in the Loop.
"It's my job to steward the building in the direction that it wants to be," Mensashe said. "I've done it a couple of times now, and we're going to do our best to be successful and welcome a lot of tenants as soon as possible."
