South Michigan Ave. Market Transforming

CHICAGO—The recent sale of 200 S. Michigan Ave. by Equus Capital Partners, Ltd., for $69 million is yet another sign that the office market on S. Michigan Ave. has changed in the past few years. Although the sleek 22-story tower stands out a bit from its older neighbors, Joseph Neverauskas, senior vice president and head of Equus’ Chicago regional office, says the upgrade in its tenants since the private equity fund manager took over the building in 2000 reflects a neighborhood trend.

“South Michigan has developed because of Millennium Park and the influx of lots of new residents,” he says. Although this corner of the CBD probably won’t ever command the rental rates seen across the river on N. Michigan, its transformation into a more livable, residential neighborhood has brought in its wake public relations firms, companies involved in creative work, architectural firms and others. “Those are the types looking at South Michigan right now.”