CHICAGO-The Farbman Group, based in Southfield, MI, has doubled its leasing at the historic Bell Federal building since the firm purchased it for $10 million in December from Bank of America. The recent leases by Columbia Insurance and S&R Media were for almost 40,000 square feet.
When Farbman bought the 13-story tower at 79 W. Monroe, it was nearly empty, at 30% occupied and six empty floors, vacated by the former owner. Today, the 200,000-square-foot building is more than 60% leased.
Andy Farbman, president of the family-owned company, tells GlobeSt.com that he’s pleased his thesis has played out. “It’s a good clean space in the loop that we knew we could bring rents down to an appropriate price point,” he says. Asking rents at the building are between $19.50 to $22.50.
The company completed a renovation of the lobby and other areas. “It’s a solid class B building now,” Farbman says. “We think we can continue with the same momentum and get close to 90% leased by year end. Leasing in the Central Loop is really robust, there’s a great brain trust here. Companies that need growth come to the Loop to find workers.” The company also purchased the 200,000-square-foot Randolph-Wells building in the West Loop in July for $13 million.
Matt Carolan and Kurt Kittner with Jones Lang LaSalle represented Columbia in its lease. Joe Storiz with Marc Realty represented S&R. Jeffrey Bernstein and Andy DeMoss with Bradford Allen Realty Services represented Farbman in the transactions.
Built in 1906, the Bell Federal building was designed by Jarvis Hunt. Walgreens operates out of the ground floor, and the top floors are occupied by a number of tenants that include law and accounting firms. The building, known for its historic weather bell that changes color with changes in temperature, is open for a tenant that would want naming rights, Farbman says.
Farbman does not own the ground under the building, which is owned by investor David Friedman. Farbman is paying a lease for the land.
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