CHICAGO—Union Investment Real Estate GmbH, the owner of 111 South Wacker, has just completed two new lease transactions that will fill about 75% of the space left vacant by the May 2015 exit of R.R. Donnelley.
Global insurer AXIS Reinsurance has signed an 11-year lease for all 28,609 rentable square feet on the 35th floor, and global investment banking firm Houlihan Lokey has signed a 15-year lease for all 57,298 rentable square feet on floors 37 and 38. The new leases keep the 51-story, 1.1 million square foot building's occupancy rate at around 97%, a rate it has held since opening in 2005.
“Even though it's only ten years old, the owners have committed to adding new amenities and making sure the building stays one of the top trophy properties in the market,” Jamey Dix of The Telos Group tells GlobeSt.com. Along with Telos' Brian Whiting and Bill Truszkowski, he represented the building's ownership. Tom Volini of Colliers International represented AXIS in the transaction, while Chris Wood, Steve Schneider, Andy Heymann of Cushman & Wakefield represented Houlihan Lokey.
Union Investment Real Estate GmbH is investing this year in significant new amenities that will include an expansion of the building's conference auditorium to accommodate up to 400 people, an expanded fitness center, upgraded elevators and other features. “They are going to continue to raise the bar when it comes to amenities,” Dix says.
“We're going through a time when every downtown owner is taking a serious look at the amenities they offer,” he adds, partlyy because a set of major new office towers including Hines' River Point tower at 444 W. Lake St. will open up in the next few years and increase the competition for top corporate tenants. “However, the primary reason for the amenity renovations is that our tenants' needs and expectations are changing. We are evolving the building to ensure 111 SW stays ahead of the curve and satisfies the needs of our tenants for the next 20 years and beyond.”
AXIS will relocate to 111 S. Wacker in March 2016 from its current Chicago office at 303 W. Madison. “The stunning views from the 35th floor of 111 S. Wacker set the stage for this significant expansion of AXIS' presence in downtown Chicago,” says Volini. “The trophy amenities, high-quality architecture and sustainable building features create an ideal setting for AXIS. As they consolidate from two separate spaces, AXIS will enjoy the efficiencies of bringing everyone together on one full floor that will support their business effectively for years to come.”
Houlihan Lokey will relocate to 111 S. Wacker in June 2016 from its current facility at 123 N. Wacker. “Houlihan Lokey set very high expectations relative to building image, overall lease terms and the strength of building ownership and building management for their new Chicago office location. 111 S. Wacker delivered on all fronts,” says Wood of Cushman & Wakefield.
The only remaining space left in 111 S. Wacker is on the 36th floor, Dix says. “We are going to lease it as fast as we can.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
