Peggy McTigue, SVP with CB Richard Ellis Inc., representedThornton in the lease transaction. Building owner Prime GroupRealty Trust was represented in the lease transaction by AnitaPallardy, SVP with the REIT.

The firm has leased 15,000 sf at 14 E. Jackson since 1999.Thornton needed to expand and was attracted to the former IBMbuilding because its architecture and "they absolutely loved theimprovements that the Prime Group Realty Trust has made," McTiguesays. The heating, ventilation and air conditioning system has beenredone for several floors, including the 15th floor, which the firmwill occupy, she says. The building will receive a property taxreduction by approximately 50% for a 12-year period, due to alandmark tax status, once renovations to convert 12 floors to ahotel are complete, she says. The reduction in real estate taxeswill reduce the tenants' gross rental rates. The cost for operatingexpenses and taxes is currently approximately $15 per sf, McTiguesays. The asking lease rate is between $19 per sf and $20 per sfnet.

The office space in the building is more than 90% leased.However, Jenner & Block, the major tenant in the building,plans to move to a new building at 353 N. Clark.