The company, which is expanding from its space at 70 W. MadisonSt., already has a temporary lease for the entire eighth floor of120 S. LaSalle. Daniel Arends, a principal with Colliers Bennett& Kahnweiler Inc., says the company needs more space, though itwill still keep 90,000 sf at 70 W. Madison. "There's about 90employees in 28,605 sf in a temporary set-up right now, until thelease starts on Jan. 1," he tells GlobeSt.com. "I think they knowtheir company is growing by leaps and bounds, and with 120 S.LaSalle being such an architecturally significant building and ahome for many past successful banks, their vision is to create abanking Mecca in the Central Loop." Arends represented the tenantin the new lease.

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The firm's move is part of the following of its strategic growthplan, said Larry Richman, president and CEO of PrivateBancorp,during the firm's first quarter conference call on Monday. Thecompany reported that it had a net loss of $8.9 million, or 34cents a share, in Q1, blamed on the expenses in following thegrowth plan. As part of the plan, the company has hired more than150 new employees, including the staffing of four new offices inCleveland, Des Moines, Iowa, Denver and Minneapolis. "We haveexperienced exceptional growth in our banking team," Richman said,"and we need new headquarters space to accommodate the growth weexpect to achieve in our franchise in the years ahead."

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The 80-year-old building is about 47% occupied now, before thenew lease, Arends says. The lease rate is about $30 to $32 per sf,gross. "The office market right now downtown, there's not a lot ofdemand for large users, this was a great coup for Lincoln Property.In general, the market has been slow," he says.

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Until January 2008, the property was 98% occupied. However, onJan. 1, a buyout was accepted for 300,000 sf of J.P. Morgan Chasespace. "This current vacancy is a recent blip in the history of thebuilding," Fritz Schaupp, SVP with Lincoln Property Co., tellsGlobeSt.com. As of Jan. 1, 2009, the property will be 70% occupied."We've got a good building, and a great new anchor tenant. Giventhe recent history, we can expect to be up in to the mid to high90s occupancy very soon," Schaupp says.

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The official listed owner of the property is TR 120 S. LaSalleCorp. The building was purchased from Lurie Co. in 2006.

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