Three-Way Deal Fills in 300 Riverside Plaza

CHICAGO—The owners of 300 S. Riverside Plaza have avoided the possibility of leaving several floors of the West Loop tower vacant after the lease for insurance holding company AIG expired in June 2014. The Telos Group, LLC, just completed a complex set of three-way negotiations between Third Millennium Group, LLC, members of the investor group that owns 300 S. Riverside, AIG and the Zurich American Insurance Company, which has agreed to lease two floors with a total of 107,000-square-feet, about half of AIG’s current space. In order to accommodate Zurich’s need, the downsizing AIG agreed to move to their new 75,000-square-foot home at 500 W. Madison this November, nearly seven months early.

“Anytime you do a three-party transaction it’s very difficult,” says Matt Pistorio, senior vice president of Telos. Too many things remained out of Telos’ control. “We couldn’t control how fast [the parties] could get their construction done or even the schedule of their architects and how fast they could complete designs. That’s why these three-party deals are very uncommon. It takes a great owner to have the patience to sit through all these negotiations and the tenants have to push all of their plans into hyperdrive to get ready.”