"They've been here for quite some time and have decided to make a long-term recommitment to the building," Michael Kaiser, Group Property Manager–Chicago of Hines, tells GlobeSt.com. "They went through a search of probably 60 potential locations and were trying to decide between Chicago and even other cities. They decided to stay in Chicago and recommitted to the building because of some of the exciting things we're doing in the building."

The building is currently undergoing a $12.5 million capital improvement project, which will install new restrooms, lobbies, corridors, elevators and floor-to-ceiling glass, Kaiser says. The lobby and first phase of restrooms are already completed, while the other projects are expected to finish next year. Hines purchased the 575,000-square-foot steel frame office tower from Tishman Speyer in late 2007 for about $131 million, sources say. Designed by Perkins and Will, the 24-story property was completed in 1980 and last renovated in 1990. Asking lease rates at the office building range from $18 to $20 per square foot net.

The YMCA currently occupied space on five different floors, but the new lease will restack its floors to increase efficiency. When the YMCA takes occupancy of its new space in mid-2010, it will occupy the entire 16th and 17th floors, and a portion of the 15th floor. "YMCA of the USA's decision to remain in Chicago is a reflection of our commitment to the city and our desire to keep nearly 230 jobs in the city's center," says Neil Nicoll, YMCA president and CEO.

US Equities assisted the YMCA in its search for new space. It eventually decided on its space for the building's economics, amenities and location, in proximity to commuter hubs. In the process of its search, the YMCA purchased land in 2005 on the east side of State Street between Balbo and Harrison in the South Loop, which it is now marketing for sale.

The property is located in Chicago's West Loop submarket, where overall occupancy is near 86% and average asking lease rates around $35 per square foot gross, according to CB Richard Ellis' mid-year CBD office market report. "It's exciting that the YMCA has recommitted to Chicago, as we've seen many companies come back and recommit to the downtown," Kaiser says. "We're happy they made the decision to stay, and we at Hines are excited we could meet on terms and to have them commit to one of our projects."

Instant Insights /

YMCA Expands Into 70,000 SF at 101 N. Wacker

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