$19.25M sale of high-vacancy, boutique, mixed-use building slated for adaptive reuse

CHICAGO, Oct. 11, 2022 – JLL Capital Markets announced today that it has closed the $19.25 million sale of the 222,728-rentable-square-foot 65 East Wacker Place, a 1920’s vintage, boutique, mixed-use, retail and office building located in Chicago, Illinois.

JLL represented the seller, a New York-based investment firm, and procured the buyer, Intersection Realty Group.

Built in 1928, the 24-story building is recognized by the National Register of Historic Places and is currently 46% leased.  In-place tenancy is anchored by Chicago institution Morton’s Steakhouse, which occupies floors one and two of the building.  With plans to convert a portion of the property to apartments, Intersection Realty Group will maintain the building’s commercial presence, inclusive of both retail and office space.

"We have significant experience with the acquisition and redevelopment of historic buildings utilizing historic tax credits. The downtown multifamily fundamentals remain strong, and driven by both our strong personal ties and long-term commitment to Chicago, we are excited to welcome 65 E. Wacker into our growing family of real estate investments," said Truman Tolefree, Founder and Managing Principal at Intersection Realty Group.

Situated within the Chicago Central Business District, 65 East Wacker Pl. offers coveted views of the Main Branch of the Chicago River. The property is situated steps from the CTA superstation at State and Lake. In addition, suburban commuters benefit from the building’s proximity to Ogilvie Transportation Center, Union Station and Randolph Metra Station, which are the three largest commuter train stations that service the Chicago metropolitan area. The location also offers vehicular access via the city’s two major north-south arteries via Lake Shore Drive and Interstates 90 and 94.

"We believe in Chicago, and we're very excited about the opportunity to play a small role in the revitalization of the Loop with the acquisition of this extremely well-located historic asset. We look forward to working with our existing commercial tenants, and on the multifamily side, we intend to deliver a product that will be attractive to today's increasingly hybrid workforce," said Chase Chavin, Co-Founder and Principal at Intersection Realty Group.

The JLL Capital Markets Investment Sales and Advisory team that represented the seller was led by Senior Directors Sam DiFrancesca and Patrick Shields and Senior Managing Directors Jaime Fink and Bruce Miller.

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Headquartered in Rochester, New York, with a satellite office in Chicago, the company owns and manages more than 1 million square feet of commercial real estate located in multiple markets across the Northeast and Midwest. Intersection is managed by an experienced team of real estate professionals with more than 40 years of combined experience in the acquisition (sourcing, structuring, & financing) and disposition of institutional quality commercial real estate.