CHICAGO— Shorenstein Properties LLC has just completed the purchase of the office portion of One North State Street, a 533,000 square foot historic office building located in Chicago's East Loop submarket. Market sources tell GlobeSt.com the price was nearly $80 million. It's a return of sorts for Shorenstein, a San Francisco-based company that in recent years sold off what had been a sizable Chicago portfolio. After selling the 1.3 million square foot former Apparel Center, now known as River North Point, among other properties, Shorenstein was left with 210 N. Green St., a 90,000 square foot adaptive reuse building in the West Loop. But with One North, located on the corner of State and Madison Streets, the company has the opportunity to tap into the new desire among many tech or other creative users to occupy spaces in the heart of downtown, instead of their usual choices in West Loop or River North. The property consists of two interconnected 11- and 16-story structures that were built in phases from 1900-1912 and feature the high ceilings, large windows and architectural details desired by creative tenants. The office component consists of floors 3-16 and includes a dedicated first floor lobby. The separately owned retail component, located on the first two floors, was not included in the transaction. The building was 55% leased at acquisition. In perhaps a signal of the kind of tenants that will eventually occupy the remaining spaces, earlier this year MakeOffices , a leading national co-working and private office space company, opened one if its first Chicago locations in the building. Other current tenants include Sears Holdings , which houses part of its e-commerce group in the building; and Cengage , a publishing firm focused on the education sector. Shorenstein plans to upgrade common areas and add amenities to the building to increase its appeal to younger workers. The project will probably look a lot like the company's revival of Market Square in San Francisco. As reported in GlobeSt.com, the 1.1 million square foot Market Square was originally constructed in 1937 as the Western Furniture Exchange and Merchandise Mart. Shorenstein Properties acquired the mostly vacant property in March 2011 and immediately began a $200-million redevelopment that transformed it into class A creative office and street-level retail space. Construction was completed in the spring of 2014 and Shorenstein brought the project's occupancy up to 99%. CHICAGO— Shorenstein Properties LLC has just completed the purchase of the office portion of One North State Street, a 533,000 square foot historic office building located in Chicago's East Loop submarket. Market sources tell GlobeSt.com the price was nearly $80 million. It's a return of sorts for Shorenstein, a San Francisco-based company that in recent years sold off what had been a sizable Chicago portfolio. After selling the 1.3 million square foot former Apparel Center, now known as River North Point, among other properties, Shorenstein was left with 210 N. Green St., a 90,000 square foot adaptive reuse building in the West Loop. But with One North, located on the corner of State and Madison Streets, the company has the opportunity to tap into the new desire among many tech or other creative users to occupy spaces in the heart of downtown, instead of their usual choices in West Loop or River North. The property consists of two interconnected 11- and 16-story structures that were built in phases from 1900-1912 and feature the high ceilings, large windows and architectural details desired by creative tenants. The office component consists of floors 3-16 and includes a dedicated first floor lobby. The separately owned retail component, located on the first two floors, was not included in the transaction. The building was 55% leased at acquisition. In perhaps a signal of the kind of tenants that will eventually occupy the remaining spaces, earlier this year MakeOffices , a leading national co-working and private office space company, opened one if its first Chicago locations in the building. Other current tenants include Sears Holdings , which houses part of its e-commerce group in the building; and Cengage , a publishing firm focused on the education sector. Shorenstein plans to upgrade common areas and add amenities to the building to increase its appeal to younger workers. The project will probably look a lot like the company's revival of Market Square in San Francisco. As reported in GlobeSt.com, the 1.1 million square foot Market Square was originally constructed in 1937 as the Western Furniture Exchange and Merchandise Mart. Shorenstein Properties acquired the mostly vacant property in March 2011 and immediately began a $200-million redevelopment that transformed it into class A creative office and street-level retail space. Construction was completed in the spring of 2014 and Shorenstein brought the project's occupancy up to 99%.

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