(To read more on the net lease market, click here.)
CHICAGO-Another long-term tenant is staying put at Loeb Partners' Michigan Plaza. Teng & Associates, which had another seven years left on its 67,000-sf lease at 205 N. Michigan Ave., restructured and extended its deal.
The architectural and engineering firm, which is involved in the condominium and hotel project at 111 W. Wacker Dr., has been a tenant at the two-building, 1.9-million-sf property since 1993. It is the fourth-largest tenant at the property, where MCI, Fox Television and Unilever lead the roster.
"The new lease will improve Teng's overall real estate cost structure by more than 20% at a building it plans to occupy for the long-term," says Studley executive vice president Laurence Morgan, which represented Teng & Associates with executive vice president Joe Learner in negotiations with Mark Buth of MB Real Estate. Although terms were not disclosed, asking lease rates at Michigan Plaza begin at $26 per sf.
Morgan says Teng & Associates' options were remaining at Michigan Plaza or signing a build-to-suit deal. The lease restructuring proved more cost effective, he adds.
Loeb Partners Realty paid $266.3 million for the property, part of the Illinois Center office complex, nearly a year ago.
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