January 9, 2008

Chicago developer considers new office tower

Category: Luxury Condos. Posted by Mike at 11:35 pm.

One of the largest real estate developers in Chicago is considering plans for a new office tower along the Chicago River.  Sam Zell, owner of Equity Group Investments LLC, is planning a renovation of 2 North Riverside Plaza and the construction of a new building in the public plaza adjacent to the historic building.

The historic building was constructed in 1929, and is currently facing a vacancy rate of 34 percent.  Company officials are studying ways to reposition the building on the hot downtown Chicago office market.

Plans for the new building to be built on the grounds of the public plaza have not been completed.  The company has hired Solomon Cordwell Buenz & Associates to draw up plans.  However, the total new space could pass 800,000 square feet, making it one of the largest new office buildings on the market.

Mr. Zell recently completed a deal with Blackstone Group LP, a New York-based investment firm, for the purchase of Equity Office Properties Trust.

Many investors are looking to commercial space as the market for Chicago Condos suffers from a drop in demand and increasing inventories of unsold units in new developments around the city.

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