CHICAGO-When the 503,224-square-foot, Class A 444 N. Michigan Avenue opened during the mid-1970s, it was considered a new state-of-the art office building with a fresh look,, perfect for the area's River North submarket. But more than three decades later, the 75%-leased building is obsolete and somewhat tired-looking.
"It's an A location and a B building," explains David Wall, president of GLL Development and Management Inc., the U.S.-based, wholly owned subsidiary of German company GLL Real Estate Partners. GLL, which acquired 444 N. Michigan Ave. in 2006, is investing $13 million in capital to spruce it up. "We want to make it an 'A' building," Wall says.
The multimillion-dollar capital activity will involve everything from creating loft space, to improving the lobbies and elevators, to freshening up public spaces. Wall says that, in a little over a year, the facelift should be complete, meaning 444 N. Michigan Ave. will be ready to take advantage of an upward market swing.
"In Chicago and a lot of other cities, we're seeing an uptick in the economy and an uptick in employment," Wall tells GlobeSt.com. "This will lead to an increase in demand for space."
Added to that, he goes on to say, is that demographics have changed; tenants aren't satisfied with traditional office space. Rather, the demand is for loft space. Spec suites developed will meet that demand and need. "That's why we hired Telos Group to help with the marketing," Wall says. "By the time we're finished with the renovation, we should be in a good position in the market. Hopefully within the next 12 to 18 months, we'll see the building over 90% leased."
Though the current occupancy is in the mid-70s, Wall says this number is misleading. Between renewals and new leases, deals have totaled more than 500,000 square feet. But given the building's location, and with a new fresh look, occupancy should increase. The leasing team at Telos Group LLC is being led by Brian Whiting, Jack O’ Brien, Matt Pistorio and Joy Jordan.
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