CHICAGO—In June, GlobeSt.com reported that Chicago-based Urban Innovations, a company with deep roots in River North, had repurchased, for about $14 million, several office buildings in the West Loop's Greektown neighborhood that the firm had sold to an out-of-town investor in 2005 for about $18 million. The out-of-towners had suffered during the recession, and their lack of capital helped push the buildings into decline, and by the time bank took over, the vacancy rate hit 30%.
Since June, however, company officials say they have signed several leases which have boosted occupancy at the 60,000-square-foot 833 West Jackson Blvd. by 20% and another two leases at the 90,000-square-foot 322 South Green St., an adjacent building, which boosted occupancy there by 17%.
“These high-end loft office buildings offer floor plans totaling up to 17,000 square feet of contiguous space,” says Aaron Zaretsky of Urban Innovations and the exclusive leasing agent for both buildings. “Chicago's West Loop and River North locations for loft office space seem to be in high-demand right now.”
The company has begun renovating the properties to enhance their appeal. Improvements include: newly expanded restrooms, corridor and lobby upgrades, bicycle storage rooms and fully built-out office suites. Both properties were also wired with fiber connectivity from multiple service providers.
At 833 West Jackson:
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Superfund USA, a company specializing in managed futures investments, has relocated their office into 3,100-square-feet. The company was represented by Ben Azulay and Hayley Abbott of Bradford Allen Realty Services.
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Aegis Worldwide has opened a new 1,770-square-foot office. Aegis is a 55-year-old recruitment company specializing in contract and permanent job placement for a variety of industries including engineering and manufacturing. Michael Graham of CBRE worked on behalf of the tenant.
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BLDD Architects renewed their lease of 3,500-square-feet. BLDD is a Midwest-based architectural design firm providing full architectural, structural and interior design services. Bill Main of CBIZ Gibraltar Real Estate Services represented BLDD Architects.
At 322 South Green:
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Collective Bias leased 2,820-square-feet for their new location. Collective Bias helps clients increase retail sales through the use of social media. Andrew DeMoss of Bradford Allen Realty Services represented the tenant.
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The University of Illinois-Board of Trustees renewed their lease on 4,000-square-feet of space. The university has been a tenant of the building for more than 15 years.
The old owners may have failed because they did not understand how to fulfill the very special role played by the Greektown office market.
“The tenants tend to be smaller,” Mike Scilingo, president of Urban Innovations, told GlobeSt.com in June, needing about 3,500-square-feet on average. “They're at a difficult stage of the entrepreneurial cycle,” most of them either downsizing or just starting to ramp up and expand, and want to temporarily settle in Greektown's older industrial lofts. “You make money on the renewals, so it's a gamble with each new tenant that they will remain viable and in business.”
Other current tenants include CAN TV, a public access station, and the Family Health Network, a Chicago-based nonprofit that occupies nearly 24,000-square-feet.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
