More Top Picks Best Oura Ring Alternatives Without Subscription
player ready...In a move to cut costs, the Daley administration is considering a consolidation of downtown office space that the City of Chicago now leases into a single location.
The city could save as much as $6 million annually by combining offices totaling 660,000 square feet of space, said a spokeswoman for the Office of Budget and Management. Those leases expire over the next six years.
The consolidation could affect four office buildings, including 30 N. LaSalle St., owned by Chicago-based Equity Office Properties Trust, where the city leases nearly 282,000 square feet of space, according to real estate research firm CoStar Group.
The city, advised by Chicago-based tenant representative Equis Corp., has been looking for between 350,000 and 500,000 square feet of office space, sources said.
Although the city is considering as many as five options, sources said the leading candidate for the consolidation is 200 W. Monroe St., a 645,000-square-foot building that is losing its largest tenant, ABN Amro Bank, to a new office complex. The 23-story building is owned by Boston-based Charlesbank Capital Partners.
The budget spokeswoman would not comment on the negotiations. Charles Wu, a Charlesbank managing partner, could not be reached for comment.
FAO Schwarz closing: The well-known FAO Schwarz store at 840 N. Michigan Ave. will close Jan. 20, setting the stage for Swedish clothier Hennes & Mauritz AB to take over the space.
The Hennes & Mauritz store will total about 45,000 square feet and also include space now occupied by a division of Limited Inc., which previously negotiated a buyout of its lease, sources said.
The toy store’s closing, which was not unexpected, follows the Nov. 21 settlement of a lawsuit file by Chicago-based U.S. Equities Realty LLC to enforce a long-term lease signed by FAO Schwarz’s former parent, according to court records.
A spokesman for the current parent, FAO Inc., based in King of Prussia, Pa., confirmed the Michigan Avenue closing date, and said the company hadn’t decided where it will relocate that store.
Commerce Plaze on block: Metlife Inc. continues to liquidate portions of its massive real estate portfolio, hiring Cushman & Wakefield Inc. to market Commerce Plaza, a 510,000-square-foot development in Oak Brook, a Metropolitan Life Insurance Co. spokeswoman said.
Zoning for the three-building complex would allow for an expansion of about 200,000 square feet.
Cramer-Krasselt is expanding: Cramer-Krasselt Co. has increased its space by about 8 percent, to 54,000 square feet, at 225 N. Michigan Ave., part of Michigan Plaza, as part of a long-term lease renewal.
Equis advised the advertising firm while J.F. McKinney & Associates Ltd. represented the building’s owner, New York-based Witkoff Group
Witkoff woes: Meanwhile, Steven Witkoff, chairman and chief executive of the real estate firm that bears his name, is once again racking up unpaid construction bills at 105 W. Adams St., continuing a pattern of erratic payment of local contractors and brokers. Last month, a unit of Kenny Industrial Services filed a lien for $508,000, which comes on top of a lien for $306,000 filed in August by O’Malley Construction Co., property records show.
Executives with the contractors could not be reached for comment. Witkoff Group would not comment, but the firm disputes the amounts of the claims and is negotiating a settlement, sources said. Meanwhile, the firm is also negotiating with lender Lehman Brothers to recapitalize 105 W. Adams, sources said.
Equity outsources: Equity Office has hired Chicago-based Stone Real Estate Corp. to handle leasing of the 107,000 square feet of retail space in its downtown office buildings. About 15 percent of the space is vacant.
The assignment is the first time the Chicago-based real estate investment trust has hired an outside retail real estate brokerage to represent it.
City land: The City of Chicago’s Department of Planning and Development has issued a request for proposals from developers for a three-acre industrial site near 23rd and Halsted Streets in the Pilsen Industrial Corridor.
More Top Picks Best Gel Insoles For Standing All Day
The site is adjacent to 24 acres of privately held vacant land that could be combined with the city-owned parcel, which has a minimum price of $722,000. Proposals are due Dec. 31.