CHICAGO—MB Real Estate has just completed a 15,400 square foot retail lease to Walgreens within the former Sears' department store space at 1 N. Dearborn St. The entrance is on the next block at 2 N. State St.

“We had numerous retailers interested in this space, which is the marquee corner on State St.,” says MB Real Estate's chief operating officer Kevin Purcell. “Ultimately Walgreens recognized the value of returning to the premier space, which they in fact occupied for 50 years from 1949-1999. We also expect to soon announce a lease to another national retailer for a portion of the remaining 7,000 square foot space on State St.”

Purcell along with Gary Denenberg, executive vice president/managing director of leasing and Kathleen Bertrand, vice president of leasing for MB Real Estate represented the building, and Edwin M. Vdovets of Keeler Real Estate represented Walgreens in the negotiations. Last year, MB Real Estate restructured the lease for Sears, which vacated the retail space while maintaining part of its office space. Purcell and Denenberg then secured a 207,000 square foot lease for the Chicago Public Schools within the vacated Sears' space.

“In the past year, we have transformed 1 N. Dearborn benefiting the tenants, the surrounding community, and significantly enhancing the property's value for ownership,” adds Purcell. “The recent lease to Walgreens is a testament to the strength of retail surrounding State St. due to the resurgence in office, residential and the continued hotel development in Chicago's Loop.”

Walgreens will take over the space in second quarter of 2016. MB Real Estate officials say about 7,000 square feet of State St. frontage remains at the property as well as an additional 10,000 square feet of retail at the corner of Madison and Dearborn. The Chetrit Group owns the 884,000 square foot property while MB Real Estate provides management and leasing services.