Chicago Office Tower Changes Hands
The 41-story building sold at a 75 percent discount.
Local investors Ken Buckman and Robert Castillo have acquired 121 W. Wacker Drive, a landmark Art Deco 41-story office tower overlooking the Chicago River and the LaSalle Street corridor, from Ameritus for a reported $30 million.
The purchase price was a 75 percent discount from the $118.5 million Ameritus paid Sterling Bay for the property in October 2018, according to Yardi Matrix data. Ameritus will continue as the building’s property manager.
The new owners are among investors betting on a downtown Chicago office recovery as Google prepares to relocate more than 2,500 employees from Fulton Market to its new headquarters at 100 W. Randolph St. in early 2028, according to Crain’s Chicago Business.
While there has been movement in the downtown office market, buildings are selling at significant discounts as commercial property values have dropped in the post-pandemic era. Last week, a joint venture between Prime Finance and Hines acquired 225 W. Wacker Drive, a Class A, 31-story, 651,000-square-foot office tower, for $115 million from Spear Street Capital. The sale price was approximately 45 percent below the $210 million Spear Street Capital paid for the property in June 2020.
Cushman & Wakefield’s Executive Managing Directors Cody Hundertmark and Tom Sitz represented Ameritus. The firm has been retained as the exclusive leasing agent for the property. Executive Managing Director Mason Taylor and Leasing Director Paige Krueger will lead the leasing efforts.
Future capital improvements
Buckman and Castillo plan a significant capital improvement program at the 441,030-square-foot tower, built in 1930, to attract new tenants. Planned upgrades include improvements to the outdoor amenity terrace and the 24th-floor conference center, a remodeled restaurant and bar and a refreshed main lobby.
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Design firm Ware Malcomb will oversee all interior and exterior architecture. Buckman said in prepared remarks the plan is to modernize the tenant experience while preserving the character and architectural details that make 121 W. Wacker Drive one of the city’s great buildings. Cosmetic renovations were done in 1986, 2006 and 2016. Current amenities include a conference room, lounge, roof deck, convenience store and on-site bike storage.
Originally known as the LaSalle-Wacker Building, the tower was designed by renowned Chicago architects Holabird & Root and is one of the city’s most recognizable Art Deco skyscrapers. It was one of the last major buildings constructed in Chicago before the Great Depression. The property is included in the West Loop-LaSalle Street Historic District on the National Register of Historic Places. United Airlines and McDonald’s previously had offices in the tower.
The office tower has a 31.3 percent vacancy rate, according to Yardi Matrix data. Current office tenants include Ameritus, Origin Investments, the Better Business Bureau and numerous law firms. The building has 13,000 square feet of ground-floor retail, with tenants including Belmont Bank & Trust, Goddess and the Baker restaurant and Duru’s Custom Shirts & Suits.
Situated at the intersection of Wacker Drive and LaSalle Street, the property has views of the Chicago River and skyline along with immediate access to the Chicago Riverwalk and public transportation options. It is located one block from Google’s planned new headquarters in the Loop.
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