(To read more on the net lease market, click here.)
CHICAGO-Title insurance provider, Attorneys' Title Guaranty Fund Inc., has signed a 10-year lease for 32,000 sf at 1 S. Wacker Dr. The space, which will maximize the 24th floor in the 1.2-million-sf building, allows for the consolidation of ATG and two of its subsidiaries, Judicial Sales Corp. and ATG Trust Co.
Jones Lang LaSalle vice president Michael Curran represented the building's owner, TIAA-CREF in the deal. He tells GlobeSt.com that following a yearlong search, ATG recognized the opportunity to move its entire Chicago operation on one floor. Curran could not disclose details of the transaction, but called the deal "highly competitive." Records indicate that rental rates in the 83%-occupied building range from $12 to $16.
Relocating from 33 N. Dearborn, where its lease expires in August, the title insurance provider is also making a significant move from the Central Loop to the West Loop. "Our location on Wacker and Madison has become Main and Main in Downtown Chicago," Curran says. "The West Loop will be the first market to recover, and we're seeing a big uptick in activity now."
While Central Loop activity has remained flat during the past year, CB Richard Ellis reports the West Loop's office vacancy dropped 2.4% to 15.1% in the first quarter of 2006 from 17.5% in the fourth quarter of 2005. Of the larger occupancies, Fifth Third Bank moved from Rolling Meadows to occupy 142,180 sf at 222 S. Riverside; CDW expanded by 107,978 sf at 120 S Riverside; and Lord Bissel & Brook moved from the Central Loop to occupy 166,200 sf at 111 S. Wacker.
As a provider to homebuyers and lenders, Curran says ATG's client foot traffic made transportation access and building signage important components to the company's relocation decision. "One S. Wacker is prominent and stands out, so for a company that relies on that identity, this location is ideal," he tells GlobeSt.com. "This company deals with a lot of residential closings, so a client coming from suburbs can come into the city, get off at the Northwestern train station, and just walk to the corner of Wacker and Madison."
Designed by Helmut Jahn and completed in 1982, 1 S. Wacker was recently renovated and now includes an atrium, convenience store and Lloyd's restaurant. Other tenants in the building include Bank of America, Fannie Mae, RSM McGladrey and Stein Roe Investment Counsel.
GVA Williams' Brad Metzger negotiated the transaction on behalf of ATG, while Curran of Jones Lang LaSalle represented the owner. Jones Lang LaSalle also leases and manages the property.
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