With a new rooftop deck and views of Millennium Park, Sterling Bay's 1 Prudential Plaza in the East Loop has qualities that attract creative tenants.
CHICAGO—Sheehan Nagle Hartray Architects, a longtime tenant in the Central Loop, just agreed to a full-floor, 23,615-square-foot lease at Sterling Bay's 1 Prudential Plaza in the East Loop. The move continues the leasing momentum at Prudential Plaza, where owners have poured millions into building upgrades in recent years, including the addition of class A amenities. It also illustrates that these renovated office properties can attract the creative tenants strongly desired by landlords.
“Architects are particular about their space, they won't go to just any building,” Geoffrey Kasselman, executive managing director of NKF, tells GlobeSt.com. His firm advised SNHA on the deal.
The 70-plus staff of architects and interior designers are attached to their current 12,907-square-foot space in the iconic Inland Steel building, one of the downtown's true architectural gems, he adds. “It's an architect's building, no question about it.” But Prudential Plaza is also an iconic part of the city's skyline, and “overlooking Millennium Park like that, especially when you have a full floor, that's a real statement space.”
The rapidly growing SNHA had already done two buildouts on its offices in the Inland building. But further growth would mean spilling onto other floors. And although some companies prefer to stay near the train lines that serve the West Loop and Central Loop, its staff felt comfortable with the East Loop's transportation options. The chance to be in a Sterling Bay building was another factor.
“Sterling Bay is a very compelling landlord,” Kasselman says. “They do seem to have the Midas touch.” The company bought the building from 601W Cos. earlier this year for $680 million, part of a strategy to acquire income-producing trophy properties even as it continues pursuing transformational development projects. It also recently purchased 600 W. Chicago in River North, the sprawling headquarters for Groupon, for $510 million, and began developing Lincoln Yards, a 70-acre mixed use district in Lincoln Park.
Although Kasselman can't discuss the specific details about the new lease, he did say “the totality of their offer was extremely compelling. And it had to be to get SNHA's attention, and to get them away from their Inland space.”
Along with Kasselman, director Matthew Whipple led the brokerage team representing SNHA, which also included Bob Chodos and Steve Levitas, NKF's vice chairmen. In addition, Kasselman and Whipple were selected by SNHA to market the firm's remaining space in the Inland building at 30 W. Monroe for sublease.
Moving into a new office before the prior lease runs out might seem like a bit of a risk, Kasselman says. But the Inland office “is a magnificent space, lightly used and freshly built out by SNHA,” and considering the building's high occupancy, SNHA is confidant they will find a tenant. “Someone is going to have a terrific opportunity.”
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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.
