Search
 

Shorenstein Gets Back into CBD Office Market

CHICAGO—The company sold off most of its Chicago holdings in recent years, but just bought 1 N. State St. and now sees an opportunity to provide creative offices.   

By Brian J. Rogal | brianjrogal | | Updated on August 31, 2016

 

chi-1NorthState (4) One North State has the historic features desired by many creative office tenants.
CHICAGO— Shorenstein Properties LLC has just completed the purchase of the office portion of One North State Street, a 533,000 square foot historic office building located in Chicago’s East Loop submarket. Market sources tell GlobeSt.com the price was nearly $80 million. It’s a return of sorts for Shorenstein, a San Francisco-based company that in recent years sold off what had been a sizable Chicago portfolio. After selling the 1.3 million square foot former Apparel Center, now known as River North Point, among other properties, Shorenstein was left with 210 N. Green St., a 90,000 square foot adaptive reuse building in the West Loop.          But with One North, located on the corner of State and Madison Streets, the company has the opportunity to tap into the new desire among many tech or other creative users to occupy spaces in the heart of downtown, instead of their usual choices in West Loop or River North. The property consists of two interconnected 11- and 16-story structures that were built in phases from 1900-1912 and feature the high ceilings, large windows and architectural details desired by creative tenants. The office component consists of floors 3-16 and includes a dedicated first floor lobby. The separately owned retail component, located on the first two floors, was not included in the transaction. The building was 55% leased at acquisition. In perhaps a signal of the kind of tenants that will eventually occupy the remaining spaces, earlier this year MakeOffices , a leading national co-working and private office space company, opened one if its first Chicago locations in the building. Other current tenants include Sears Holdings , which houses part of its e-commerce group in the building; and Cengage , a publishing firm focused on the education sector. Shorenstein plans to upgrade common areas and add amenities to the building to increase its appeal to younger workers. The project will probably look a lot like the company’s revival of Market Square in San Francisco. As reported in GlobeSt.com, the 1.1 million square foot Market Square was originally constructed in 1937 as the Western Furniture Exchange and Merchandise Mart. Shorenstein Properties acquired the mostly vacant property in March 2011 and immediately began a $200-million redevelopment that transformed it into class A creative office and street-level retail space. Construction was completed in the spring of 2014 and Shorenstein brought the project’s occupancy up to 99%.  

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.