Premier Class A Office Tower for Sale in Chicago

Wednesday, September 28, 2016

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing Chicago office tower 303 East Wacker for sale. The commercial property for sale is a rare offering that combines the prestige of a premier, Class A, central business district office tower and a Wacker Drive address with a significant value-add opportunity.

The 875,480-rentable-square-foot 303 East Wacker is prominently situated in Chicago's CBD at the intersection of Wacker Drive and Columbus Drive overlooking the Chicago River. The office tower for sale is currently 65 percent leased and offers a weighted average lease expiration of 5.1 years. The building's roster of 31 existing office tenants comprise world-renowned Fortune 500 corporations, publicly-traded companies and headquarters operations, providing investors a strong foundation of income with significant growth potential at a highly-competitive basis. Leveraging the property’s unique ability to accommodate multiple big block requirements, unparalleled setbacks, exquisite light and air, floor-to-ceiling windows and highly-efficient floor plates, 303 East Wacker provides investors with a clear path to success.

The offering includes a subterranean 284-stall parking garage conveniently accessed via lower Wacker Drive. The garage is currently operated by ABM Parking Services on a valet-assist basis and is accessible to the public 24/7. Presently, the garage has 138 monthly contracts offered at both highly-competitive reserved ($416) and unreserved ($255) rates. The garage is estimated to generate net revenues of approximately $781,055 in 2016. The 303 East Wacker garage is ideally-positioned to capture strong daily, evening and weekend use from the expanding base of Class A submarket office tenants as well as visitors to the surrounding luxury residential, hospitality and entertainment amenities.

Chicago Office Tower for Sale Investment Benefits:

  • Big Block Scarcity:  303 East Wacker uniquely positions investors to capitalize on the diminishing supply of big block space available within the Chicago CBD. Among the 303 East Wacker competitive set, only three properties are currently capable of accommodating big block requirements. With the ability to simultaneously accommodate greater than 50,000 rentable square feet within the low-, mid- and high-rise elevator banks, at highly-competitive rates, 303 East Wacker provides investors a clear advantage among an already-limited field.
  • Growth Potential:  303 East Wacker offers investors the opportunity to convert the building’s two penthouses into high-end office space. In doing so, investors will unlock the maximum potential of two highly-desirable spaces and, in turn, will add approximately 17,621 rentable square feet of net new rentable space to the asset. The repurposed 303 East Wacker penthouse space will allow investors to offer tenants dramatic, panoramic views of the Chicago River, Lake Michigan and surrounding cityscape that is unparalleled within the CBD.
  • Ultimate Connectivity:  303 East Wacker tenants benefit from immediate access to Chicago’s covered pedestrian way system, the Pedway, which connects to 303 East Wacker via the property’s concourse level. This provides tenants direct access to an expansive network of underground tunnels and overhead bridges covering approximately five miles of seemingly endless retail, dining, transportation and hospitality amenities used by tens of thousands of pedestrians daily. Providing a true full-service, Class A amenity package, 303 East Wacker aims to accommodate all tenant’s transportation needs. For those tenants preferring not to use the property’s onsite parking garage, bike room, Pedway connection to Millennium Station, numerous Pedway-connected CTA elevated rail stops, neighboring CTA bus stops, Divvy stations or seasonal water taxi stops, the property provides a shuttle operating non-stop, curbside service to Union Station and Ogilvie Transportation Center on weekdays.
  • Local Amenities:  The Pedway connects 303 East Wacker to the abundant high-end hospitality amenities provided by four of the city’s most popular hotel destinations, including the adjacent luxury Swissotel and Radisson Blu. Also adjacent to the property is the expansive mixed-use Lakeshore East development. Lakeshore East will welcome the 95-story, ultra-luxury residential tower, Vista, in 2019. GEMS World Academy Chicago, one of the most exclusive and expensive private schools in the city, is immediately southwest of the property, and Village Market provides numerous food-service amenities, including a multi-level Mariano’s Fresh Market, high-end III Forks Prime Steakhouse and area breakfast staple Eggy’s Diner, in addition to the convenience of numerous retailers. Located just steps from 303 East Wacker, the Chicago Riverwalk serves as one of Chicago’s great public amenities. With access conveniently located at the northeast corner of the intersection of Wacker Drive and Columbus Drive, tenants enjoy close proximity to all the Riverwalk has to offer including recently renovated walking paths, full service restaurants, cafes and water taxi stops.

303 East Wacker offers an investor the once-in-a-lifetime opportunity to acquire a Class A, Chicago CBD office tower with the potential for growth and access to transportation and local amenities. For more information on commercial property or other office buildings for sale in Chicago, contact HFF Senior Managing Directors Jeff Bramson or Jaime Fink or Associate Directors Bryan Rosenberg or Patrick Shields.

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