CHICAGO—As reported in GlobeSt.com, in 2014 GlenStar Properties finished $25 million in capital improvements at the Chicago Board of Trade building with the goal of transforming the 84-year-old landmark from a hub for trading firms into a home for a diverse set of office tenants. But part of that effort also includes working to retain the long-term tenants as a foundation. And the Chicago-based firm, which in 2012, along with USAA Real Estate Co., purchased the CBOT for $151 million, has just signed two notable renewals totaling 60,000-square-feet.
In the first, ADM Investor Services, Inc. has signed a new, long-term lease for 30,136-square-feet on the 21st floor. The firm will relocate from the 16th floor where it currently occupies 26,576-square-feet. Robert Sevim and Lisa Davidson of Savills Studley represented ADM in the transaction.
Davidson tells GlobeSt.com that ADM, the world's largest agricultural processor, anticipated moving out of the CBOT building, “but after an extensive, fine-tooth search of all available Central and West Loop options, we determined that the current building was a competitive option with most other buildings in the marketplace and provided the ideal solution for their growing needs.”
Sevim adds that “the space ADM will move into offers a better workflow, allowing them to work more efficiently and with additional amenities.”
“We are impressed with the significant improvements GlenStar has made to the Chicago Board of Trade building,” says Tom Kadlec, president of ADMIS. “After considering other properties, we found the CBOT building continues to be the best environment for our growing firm, our customers' trading requirements and our long-term commitment to the futures industry.”
In addition, Wedbush Securities has signed a long-term renewal and expansion, increasing its current 18,133-square-foot footprint by 10,994-square-feet. David Miller with JLL represented Wedbush in the transaction.
“We are excited to grow and retain two premier, world-renowned tenancies at the property,” says GlenStar's Christian Domin, who along with Sandy Macaluso handles leasing for the property.
GlenStar completed the two-year redevelopment in May. The company installed up-to-date fiber optic technology, including a new $1.2 million “meet-me-room” and a fiber backbone riser system. Other improvements include a new 10,000-square-foot, 24/7 fitness center; a 24/7 video conference center; a refurbished lobby; new ceilings, lighting and bathrooms on 40 floors; a refreshed 12th floor atrium and a new array of retail outlets.
The Mezza Grill, for example, a 2,184-square-foot restaurant that provides Mediterranean fare, recently opened. And the owners of the Ceres Café agreed to a 14-year extension, a deal which includes a significant renovation of their first-floor space. Other new outlets will include a gourmet patisserie and TR Napa Valley, a social wine club.
Today, a variety of tenants from different industries – from tech to marketing to logistics firms – now call the CBOT home. The new tenants include: Data Stream LLC, a technology services company; Threshold Acoustics, an engineering firm; Startham Partners, an executive coaching company; energy firm Noble Americas and Steidlmayer Software.
Back in 2012, the 1.3-million-square-foot building at 141 W. Jackson was only 61% occupied. But Domin told GlobeSt.com that “by the end of 2015, I'd be surprised if we didn't have an occupancy rate of 85%.”
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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.
