AMA Signs to Anchor Former IBM Building

CHICAGO-The iconic IBM building, which has suffered since losing its namesake tenant in 2006, has captured another major lease, as the American Medical Association has announced it will take over up to 300,000 square feet in the 52-story tower. The building will be renamed AMA Plaza when the organization moves into its 15-year lease starting in 2013.

In 1996, IBM sold the 330 N. Wabash tower to the Blackstone Group and took about 10 years to fully move out of the building, which was designed by local famous architect Ludwig Mies van der Rohe. Another major tenant, Jenner & Block, also left for a new tower nearby. The structure’s Lake Michigan views were also somewhat blocked by the construction of the Trump International Hotel and Tower next door. As of November, less than half of the office floors were leased, though a Langham Hotel is going into the bottom of the building.

The AMA is moving from its current lease at 515 N. State St. James Madara, EVP and CEO of the group, said in a statement that it will be exciting to move into a Chicago icon. The organization currently leases more than 325,000 square feet at 515 N. State, and has about 1,100 employees in the Chicago area.

 “It’s been a thorough and exhaustive process, and we feel this decision makes good sense economically and logistically,” Madara said. “We have an opportunity to design our new workspace in a manner that is responsive to our organizational needs and how our employees work. We are committed to providing our employees with an excellent environment at a reasonable cost, and we believe this move will achieve that goal. Chicago has been home to the AMA for more than a century, and we feel fortunate to be an integral part of a world-class city that offers so much, including a vibrant and thriving medical community. Today’s announcement underscores our commitment to Chicago, and our new headquarters will serve the AMA well for years to come.” 

The lease terms for this deal have not been released, though it’s assumed that the AMA is taking a deal to move into the IBM Building. Rates at the 30-story 515 N. State tower, where AMA is the anchor tenant, average about $15 per square foot.

A joint venture of locally based REIT Prime Group Realty Trust and Stamford, CT-based Five Mile Capital Partners LLC now own 330 N. Wabash., which is about two blocks south of 515 N. State. The REIT is also the property manager and leasing agent for the building, and was assisted in the AMA lease by Jones Lang LaSalle.