One North LaSalle Trades Hands

CHICAGO—Bridge Investment Group just acquired One North LaSalle, a 47-story, 493,738-square-foot vintage office tower located in downtown Chicago. The purchase closely follows the Atlanta-based firm’s acquisition of O’Hare International Center, a pair of nine-story class A office towers in suburban Rosemont, and company officials say they want to be major players in the region’s office market.

“In Chicago, you see a lot of young start-ups, and more companies on the cutting edge,” Brian Tretinik, managing director of Bridge Investment Group, tells GlobeSt.com. However, since 2011 developers converted nearly 1.4 million square feet of vintage Central Loop office space into alternative uses such as hotels and apartments. That puts a squeeze on many tech and creative office users, but the renovated One North LaSalle may help alleviate that problem.

Tretnik points out that the once-stodgy building, originally built in 1929, has undergone more than $35 million in capital improvements over the last decade. Recent renovations include a new full-service amenity floor known as The Landmark, which features a state-of-the-art fitness center, high-tech conference facilities, lounge areas and a rooftop top deck and terrace.

These changes have already made the building a hit, he adds. A mix of top tech, advertising and new media companies, along with some financial services and law firms, occupy 84.6% of the space, and average starting rental rates have increased by nearly 20% since 2016.

“We think rents will continue to move as the demand stays strong,” Tretnik says. “Chicago always seems to have new buildings popping up,” but these trophy towers aren’t One North LaSalle’s competition. And with the continuing loss of vintage office space, “it’s going to have a decreasing number of properties its competing against.”

Bridge also plans to make the building even more appealing by creating new spec suites, and due to the small floor plates on the upper floors, some tenants that need only a few thousand square feet will have the rare opportunity of occupying a full floor, perhaps with their own outdoor balcony.

Office spaces ranging from 188 to 7,486 square feet are currently available, with the new spec suites tentatively scheduled to deliver in 2019. Bridge Commercial Real Estate, the operating company for Bridge Office, will oversee the leasing which will be led by Melissa Rubenstein, Annie Nicolau, and Jay Miller of JLL.