Today, office could be a boom or a bust depending on the market. For 601W, its recent completion of a $265 million downtown Chicago office redevelopment known as Canal Station, hasn't worked out as planned, as the company has faced hurdles over financing issues in a tough lending market. That has the developer hoping to now convert the asset into a data center property.
According to a report from Crain’s Chicago Business, 601W is seeking to re-purpose some or all of the asset at 801 South Canal Street. The plans call for at least some portion of the 683,000-square-foot building with computer servers or some form of technology that holds data, according to the local newspaper.
It comes as Crain's noted that lenders have been cautious about supporting office-related project efforts in downtown Chicago due to uncertainty in the area with vacancies. In addition, it reported that Canal Station is likely valued at less than its loan balance.
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