CHICAGO—Valence Health just became the latest West Loop firm to leave one of the older buildings in the neighborhood for space in a class A office tower nearby. Company officials say they will move their 385 Chicago-based employees from 600 W. Jackson Blvd. to three floors and 125,000-square-feet in 540 Madison St. by late 2014.
“After looking at a number of different spaces, Valence decided that 540 West Madison was an ideal fit for the company’s diverse range of services, our employees needs and our customers’ requirements,” said Phil Kamp, chief executive officer of Valence. “The modern work environment, unique space and unmatched amenities both inside and outside the building set 540 West Madison apart and were ultimately what led Valence to make the choice to relocate our burgeoning operation.”
A joint venture led by Joseph Mizrachi and David Werner bought the 1.1-million-square-foot tower in late 2012 for $350 million, the highest price for an Chicago office building that year. Since then, the partners have had some success in attracting desirable tenants. Apartments.com, for example, also recently moved from 175 W. Jackson, another older building, and occupied 40,033-square-feet at 540 W. Madison.
Valence serves 39,000 physicians, more than 120 hospitals and 19.5 million patients, and its new home will more than triple the size of its Chicago footprint.
The move allows the company to retain all the advantages of a West Loop location, including the robust restaurant and retail scene, quick access to the Ogilvie Train Station, among other features, but also get access to building amenities such as a half-acre outdoor roof garden and a large food court. And the owners say they have plans to add a new fitness center, expanded conference spaces and a new wine bar and restaurant near the Madison St. lobby.
Valence was represented in the transaction by Cal Wessman, Lisa Konieczka and Bill Sheehy of CBRE. The owners were represented by Brian Whiting and Jamey Dix of the Telos Group.