Tenants Strike Deals for Michigan Ave. Space

CHICAGO-Burrell Communications is moving from two other Michigan Avenue locations to 233 N. Michigan Ave., a 30-story office building in the Illinois Center complex that became a joint venture. Meanwhile, a soft market also played a part in Geneva USA’s decision to renegotiate its sublease and increase it to 12,553 sf less than a mile north at 980 N. Michigan Ave.

Published lease rates at Parkway Properties’ and Investcorp’s joint venture at 233 N. Michigan Ave. started at $18 per sf net. Net rates start at $15 per sf at One Magnificent Mile, but taxes and expenses add another $15 per sf to the bill.

Cost reduction for the tenant was a goal achieved in Burrell’s 34,508-sf lease deal, says Equis Corp. senior vice president Alain LeCoque. “Moreover, we were able to structure the transaction to overcome some substantial negative accounting, tax, and cash-flow impacts due to existing obligations,” says LeCoque in a statement.

“While still continuing to take advantage of current sublease space, the company was able to capitalize on current market conditions and secure a long-term, cost-effective lease that offered much needed expansion space,” says Grubb & Ellis senior vice president Tom Volini, who represented Geneva USA, an electronic trading firm, in negotiations with Insignia/ESG.

Burrell Communications, an advertising agency specializing in African-American and urban markets, has a client list that include McDonald’s, Sprite, Verizon, and the Illinois Lottery.

Vice president Steve Schneider and associate Jeff Lindenmeyer represented Burrell Communications while Brian Whiting of J. McKinney & Associates represented the joint venture.