In a sign that tenants in Sears Tower may be regaining a level of comfort after the terrorist attacks of Sept. 11, a key tenant is moving more employees into the 110-story skyscraper.
Ernst & Young is moving about 580 employees from 111 N. Canal St. into 239,000 square feet of space that the accounting giant already leases in Sears Tower, a spokesman confirmed. Last year, anxiety about a terrorist attack against the prominent Chicago building prompted some Sears Tower tenants to consider reducing their presence there or leaving completely.
To make room for the employees, Ernst & Young is moving about 200 members of a specialized tax group from Sears Tower into 111 N. Canal St., where the firm leases two floors. The moves mean a net gain for Sears Tower of about 380 employees, the spokesman said.
Real estate firm Jones Lang LaSalle Inc. has been hired to sublease 60,000 square feet of space in 111 N. Canal that Ernst & Young is vacating.
The moves will cut costs by reducing the firm’s total space. And the spokesman said it will lead to more efficient operations because the employees moving from 111 N. Canal frequently work with their Sears Tower colleagues, while the tax group is independent.
Real estate experts said the moves reflect a balancing act by many Sears Tower tenants.
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“It’s a clear sign that long-term financial obligations are being measured against concerns about security,” said Steven Stratton, managing director of the Chicago office of Dallas-based tenant representative Staubach Co.
Reschke response: A U.S. Court of Appeals has put on hold a Feb. 25 auction of the 34 percent stake in Prime Group Realty Trust that is controlled by Chairman Michael Reschke.
Vornado Realty Trust has been seeking the auction in order to foreclose on two loans held by a Reschke-led partnership. To prevent the foreclosure, the partnership filed for bankruptcy, but that case was dismissed last month. But on Friday, the U.S. Court of Appeals stayed the dismissal until it can hear the partnership’s appeal, according to a Feb. 15 filing by Reschke with the Securities and Exchange Commission. Briefs are to be filed by March 4.
Ellis enlistees: Industrial broker Keith Puritz, a specialist in the north suburban market, has jumped to CB Richard Ellis Inc. from Cushman & Wakefield Inc.
Puritz will be a senior vice president with CB Richard Ellis, working out of the Bannockburn office. Also making the move is Brett Kroner, a vice president, and Tim Reynolds, an associate.
Housing stops: With just 92 new downtown homes sold, the good news about the fourth quarter is that it’s over.
Sales plunged 90 percent during the quarter from the 934 units sold in the third quarter, according to a report by Chicago-based Appraisal Research Counselors Ltd. Condo conversions accounted for 76 of the fourth-quarter sales.
While customer traffic has increased since Jan. 1, lenders and developers are slowing down new projects until the strength of the market becomes clearer. Four new-construction projects totaling 456 units have been pulled from the market, including a midrise in the West Loop’s Kinzie Station development, according to the Downtown Chicago Residential Benchmark Report.
Assuming that projects that haven’t yet started construction are likely to be delayed, the report analyzed the pipeline of new projects according to their anticipated delivery date and status.