Historic Office Building for Sale in Chicago's Central Loop

Thursday, June 29, 2017

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale 105 West Adams, a historic, 41-story, 314,855-square-foot office tower with ground-floor retail in the heart of Chicago’s Central Loop. The building, also known as the Clark Adams Building due to its prominence at the popular South Clark and West Adams Streets intersection, was designed by the Burnham Brothers and completed in 1927 as the tallest continuous-clad brick building in Chicago, a distinction the office property for sale still holds today. 

The Clark Adams Building is a multi-tenant office building sitting on top of a separately owned 430-room Club Quarters Hotel, which opened in 2001, as well as Elephant & Castle, a pub and restaurant (also non-owned). The neo-classical structure is located adjacent to the Federal Government Core, a multi-building area including Mies van der Rohe’s Federal Plaza and City Hall as well as the LaSalle Street Corridor, the address of choice for many of Chicago’s prominent law firms, financial institutions and professional service firms.

Located in the core of Chicago’s Central Loop, the Clark Adams Building is easily accessible to both vehicular and public transportation commuters. Interstate Highways 90, 94 and 290 as well as Lake Shore Drive are all located within one mile of the property. Union Station and Ogilvie Transportation Center, which serve more than 130,000 and 105,000 daily passengers respectively, are both located half a mile from the office property for sale. Additionally, stations for each of Chicago’s public train lines, which serve 750,000 city commuters daily, are all within two blocks of 105 West Adams. A Divvy station is also situated just steps from the building. Given the property’s central location, the Clark Adams Building boasts a perfect Walk Score® and Transit Score® of 100.

The Clark Adams Building meets all the prerequisites for an exceptional opportunistic investment; current vacancy, attractive basis, substantial development potential, an extremely favorable financing environment and a realistic and readily achievable exit strategy. The property is currently 63 percent occupied and includes ground floor retail tenants Starbucks and Native Foods. This real estate investment listing offers a rare value-add opportunity to acquire a well-located downtown Chicago office building with significant upside potential through refurbishing the lobby; creating a fully-amenitized second floor comprising a fitness center, conference rooms and luxury tenant lounges; constructing outdoor tenant spaces on applicable floors; and/or lease up the existing vacant space.

Chicago Office Property for Sale Investment Highlights

  • Remarkable Value-Add Opportunity:  The Clark Adams Building presents an excellent opportunity for an investor to lease more than 100,000 square feet of vacant space, which, along with contractual rent escalations, has the potential to increase the net operating income from $1.5 million in year one to a projected stabilized income of $6.6 million in year five. The property’s value orientation for this location combined with the diminishing supply of affordable vintage assets in the market will push 105 West Adams to the forefront of consideration for tenants. Furthermore, the property represents a unique opportunity to acquire a well-located, storied property at a significant discount to replacement cost.
  • Unrivaled Connectivity within Chicago’s CBD:  With a growing mobile workforce, modern tenants require the ease of access to local, regional, national and international transportation hubs, all of which are within close proximity to 105 West Adams. Occupants of the property enjoy direct access to a number of the Chicago Transit Authority (CTA) train stations, including Quincy, LaSalle/Van Buren, the Harold Washington Library and Jackson. O’Hare International Airport and Midway International Airport are also accessible in under 45 minutes via the CTA Blue Line and Orange Line routes. Chicago’s two largest commuter rail stations, Ogilvie Transportation Center and Union Station, are both within a 10-minute walk to the property. The Clark Adams Building is located a short five- to 10-minute drive from the Randolph Street on-ramp for Interstates 90 and 94, which link the Chicago CBD to the greater Chicago metropolitan area and beyond.
  • Proven Tenant Demand Among Similar Repositioning Strategies:  The ability to provide office space in a historic building with systems and amenities consistent with Class A office buildings is unique and has been met with high tenant demand. The Clark Adams Building’s dynamic floor plates suiting both start-up and developed companies alike provide an investor an opportunity to create a competitive advantage by renovating the property to restore its architectural roots while adding modern and differentiated amenities. Additionally, the commercial property for sale’s current tenant mix includes quality large and small national, regional and local tenants from a variety of industries including financial services, education, nonprofit, technology, construction and legal. 105 West Adams’ dynamic floor plates lend well to small start-up companies while also providing room to grow within the building.
  • Historic Building with Iconic Architecture:  Collectively known as the Burnham Brothers, Daniel Hudson Burnham Jr. and Hubert Burnham designed the office building for sale, then known as the Bankers Building, in 1927. When it opened, the building rose nearly 200 feet above the great dome of Henry Ives Cobb’s Federal Courthouse across the street. At 476 feet tall, the property remains the tallest Chicago building to be clad entirely in brick. Its design produces ideal open floor plans for tenants, and the numerous windows contained in the upper floors produce remarkable views of Chicago’s government and financial sectors.

For more information on the Clark Adams Building or other office properties for sale in the Chicago area, please contact Jeff Bramson, Jaime Fink, Jeff Bucaro, Bryan Rosenberg or Patrick Shields in HFF’s Chicago office. For financing inquiries, please contact Mr. Bucaro. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

By Topics