AmTrust Secures 2 Renewals at Chicago Office Building

AmTrust Realty has signed two lease renewals totaling 20,000 square feet at 33 N. Dearborn St., a 330,000-square-foot office building in Chicago’s Central Loop. The two tenants are law firm Heyl, Royster, Voelker & Allen, P.C. and non-profit organization KIPP Foundation, that renewed their agreements for 13,383 square feet and 6,617 square feet, respectively. Advocate Commercial Real Estate Advisors negotiated on behalf of the tenants.

The mid-rise property’s roster also includes The Economic Club of Chicago, Bank of America, Krieg DeVault LLP, Synexus and Chicago Volunteer Legal Services, according to CommercialEdge. In addition to the two renewals, recent leasing deals at the office building include a 30,000-square-foot renewal by Corboy & Demetrio, the property’s anchor tenant, said AmTrust’s Chicago Managing Director, Patrick Kearney, in prepared remarks.

The current ownership picked up the asset in 2015 for $62 million from seller Fulcrum Asset Advisors, the same source reveals. Built in 1966, the 24-story office building features four passenger elevators, conference rooms, a fitness center and street-level retail spaces. The owner announced last September that it plans to implement a $50 million capital improvement strategy at the property. The renovation program also includes One East Wacker, a 540,000-square-foot office tower overlooking the Chicago Riverwalk.

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Construction is currently underway, with improvements at 33 N. Dearborn St. including the addition of an outdoor tenant roof deck, new ground-floor retail spaces, an expanded bike room, improvements to the building’s entrance, signage and elevators. The overhaul will also comprise new spec office suites, updated corridors and restrooms, as well as the renovation of the fourth-floor conference center. The project is the initial stage of AmTrust’s $100 million capital improvement program for its entire Chicago portfolio.

Last September the owner tapped Stream Realty Partners as exclusive leasing agent in charge of its Chicago office portfolio. The brokerage team includes Executive Vice Presidents Mark Gunderson and Wendy Katz, together with Vice President Erica Marshall. Advocate Commercial Real Estate Advisors’ team of Managing Principal David Knight, Associate Broker Ethan Braham and Client Relationship Manager Luke Wuchenich assisted the tenants during renewal negotiations.

Chicago: one of the most affordable markets in the U.S.

Leading office markets in the Midwest continue to post some of the most affordable asking rents across the U.S., a recent CommercialEdge report shows. Chicago’s $27.73 per square foot was the highest among these, followed by Twin Cities’ $26.34 and Detroit’s $21.32 per square foot.

Recent deals in metro Chicago include Trammell Crow Co.’s 35,021-square-foot lease at its 1375 West Fulton, a 301,260-square-foot life science building. MonoSol, a division of Tokyo-based Kuraray Group, will use the new location as an innovation and technical center.

In November 2023, Irvine Co. signed a 29,839-square-foot agreement with law firm Gordon Rees Scully Masukhani at the 1.4 million-square-foot One North Wacker tower. The property’s amenity floor will be renovated, with completion scheduled for late 2024.