(To read more on the net lease market, click here.)
CHICAGO-Santa Ana, CA-based Triple Net Properties Realty Inc. has awarded Jones Lang LaSalle the leasing assignments for 123 N. Wacker and 525 W. Van Buren. The two properties, located in Chicago's West Loop, total more than one million sf.
Most recently, Triple Net acquired the 540,676-sf building along Wacker Drive from Dallas-based Prentiss Properties for $174 million, using a $150-million financing package from GE Real Estate Capital and MMA Realty Capital. Jones Lang is marketing 13,000 sf of available space. Tenants of the building include Morton International, Meckler, Bulger & Tilson and Man-Glenwood Inc.
The 524,784-sf building on West Van Buren, also known as the Congress Center, is currently 90% leased. Tenants include North American Insurance, Akzo Nobel and GE Employers Reinsurance Co.
Mike Curran, vice president with JLL, tells GlobeSt.com that while the buildings are near full occupancy, the primary challenge will be to overcome the softness in the office market. According to the most recent figures released by Transwestern Commercial Services, the overall Downtown vacancy rate edged up to 15.9% at mid-year, up from 15.8% in the first quarter and 15.4% a year ago.
Curran could not disclose leasing rates, but said similar quality buildings in the area are leasing at $22 to $25 net per sf. Because there is little room available in the buildings, JLL will be looking for smaller users who can fill 2,000-sf to 3,000-sf spec suites. The JLL leasing team of Curran and Monica Moore, leasing director, will handle all leasing aspects of the properties.
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