Hilco Real Estate and two senior executives of MB Real Estate Services, Peter Westmeyer and Kevin Purcell, have acquired the historic landmark tower One North LaSalle located in Chicago’s Central Loop. The new joint venture announced that the 47-story property will be undergoing an extensive redevelopment effort to introduce a variety of high-end tenant amenities. A multi-million-dollar capital budget is being put forth by the new ownership group and MBRE has been contracted to provide ongoing management, leasing, and construction oversight services for the property.
“We are very familiar with One North LaSalle, having managed and leased it for various owners over the past 17 years,” said Kevin Purcell, Executive Vice President and Chief Operating Officer of MBRE. “Our planned redevelopment, combined with a hands-on ownership approach, will allow us to successfully position the property and unlock One North LaSalle’s full potential. This is a tremendous and unique opportunity for all user types to lease space within a historic and highly visible Chicago office building that offers an ideal location in the Loop,” said Purcell.
Built in 1929, One North LaSalle is a 47-story, 500,000 square foot office building situated on the northeast corner of LaSalle and Madison streets. The building offers a prime downtown location that provides easy access to public transportation and highways, as well as an abundance of hotels, restaurants, and retail. The most recent building renovation included restoration of the Art Deco detailing, and installing new elevators, HVAC, electrical, and plumbing systems.
New ownership’s redevelopment plans call for the addition of spec suites and remodeling the building’s interior. Once complete, the property will feature a renovated lobby, tenant corridors, and restrooms plus first-class tenant amenities including a rooftop deck, tenant lounge, conference facility, fitness center, and bike room. MBRE’s Mark Buth and Jesse Slack are representing building ownership for leasing opportunities.
Hilco Global Chairman and CEO, Jeffery Hecktman said, “Buying One North LaSalle is a significant deal for Hilco as we begin to penetrate the Chicago marketplace and diversify our portfolio of real estate investments across the country.” The Hilco Global Real Estate operating company has grown considerably over the last several years, investing and acquiring many commercial and industrial properties across North America including properties in Massachusetts, Colorado, Maryland, Ohio, and New York.
“We believe the acquisition of One North LaSalle is a unique opportunity to add value right here in our hometown marketplace. Clearly the Central Loop market has experienced a surge of leasing activity and tenant interest recently,” said Roberto Perez, Executive Vice President at Hilco. “The Central Loop’s dynamics are shifting and this location has become very attractive to technology, advertising, media, and information tenants who have been quick to recognize the area’s transition into a 24/7 work/play environment.”
Designed by Vitzhum & Burns, One North LaSalle served as Chicago’s tallest structure for 35 years. The Art Deco style building, known for its iconic exterior clock, was designated a Chicago Landmark in 1996 and added to the National Register of Historic Places in 1999.
Image credit: CTBUH Aric Austermann