“This building checks all the boxes when it comes to an outstanding investment opportunity,” adds Miller. “It offers an iconic structure, world-class rent roll, modernized infrastructure, a prime live, work, play location and the ability to realize incredible upside.”

“While creative office may have first been adopted by the tech community, it has matured into the preferred office product type across nearly every industry as Fortune 500 firms have and continue to move into this product type en masse,” says Felsenthal. “As a result, properties such as Sullivan Center have been attracting the most desirable tenants in the market.”

The floor plates range from more than 100,000 square feet on the lower levels to between 22,000 and 79,000 square feet on upper levels. Tenants currently lease 97% of the office component.

The location gives tenants easy access to all seven CTA El lines. CTA buses run along both State St. and Michigan Ave., and tenants have a short walk to both Union Station and Ogilvie Transportation Center. Nearby attractions include The Art Institute of Chicago, Millennium and Grant Parks, and the heavily trafficked State Street retail corridor.

“Sullivan Center provides investors with strong in-place cash flow as well as tremendous upside through multiple channels including raising significantly below-market rents to market rate,” says Miller. “The competitive set of large floor plate creative office buildings have benefited from over 80% rent growth over the last five years. That rent increase is bolstered by the fact that the property has gone through a $200 million renovation focused on modernizing major mechanical systems and restoring the historical features of the building.”

Target

CHICAGO—A partnership between Kohlberg Kravis Roberts & Co. LP and Madison Capital has brought on a team of experts from JLL's capital markets group to market the office component of their Sullivan Center, an 833,000-square-foot trophy asset located in the heart of Chicago's Loop along the State St. retail corridor.

Formerly known as the Carson, Pirie, Scott and Co. Building, it hosted the iconic department store for generations, but was transformed over the past decade into a creative office space. And the Louis Sullivan-designed building is one of the few creative office spaces that has won a spot on the National Register of Historic Places.

The offering presents a chance for the CBD to record the type of mega-sale that had become almost common in 2015, a record-breaking year for office investment. More than $6 billion in CBD office properties traded hands that year, including prominent structures like Willis Tower and the Aon Center, breaking the previous record of $5.3 billion set in 2006. In 2016, the CBD office market reverted to the 20-year historical average when investors spent about $2.6 billion.

“It's an architecturally-significant building that has very large floor plates, and there is a scarcity of that combination in the city of Chicago,” JLL international director Bruce Miller tells GlobeSt.com. Along with managing director Nooshin Felsenthal, he will lead the Sullivan Center marketing efforts.

“This building checks all the boxes when it comes to an outstanding investment opportunity,” adds Miller. “It offers an iconic structure, world-class rent roll, modernized infrastructure, a prime live, work, play location and the ability to realize incredible upside.”

“While creative office may have first been adopted by the tech community, it has matured into the preferred office product type across nearly every industry as Fortune 500 firms have and continue to move into this product type en masse,” says Felsenthal. “As a result, properties such as Sullivan Center have been attracting the most desirable tenants in the market.”

The floor plates range from more than 100,000 square feet on the lower levels to between 22,000 and 79,000 square feet on upper levels. Tenants currently lease 97% of the office component.

The location gives tenants easy access to all seven CTA El lines. CTA buses run along both State St. and Michigan Ave., and tenants have a short walk to both Union Station and Ogilvie Transportation Center. Nearby attractions include The Art Institute of Chicago, Millennium and Grant Parks, and the heavily trafficked State Street retail corridor.

“Sullivan Center provides investors with strong in-place cash flow as well as tremendous upside through multiple channels including raising significantly below-market rents to market rate,” says Miller. “The competitive set of large floor plate creative office buildings have benefited from over 80% rent growth over the last five years. That rent increase is bolstered by the fact that the property has gone through a $200 million renovation focused on modernizing major mechanical systems and restoring the historical features of the building.”