UI Sells West Loop Office Buildings
Urban Innovations is pleased to announce that it has completed the sale of two office buildings in the West Loop/Greektown neighborhood of Chicago. UI worked in conjunction with consultants from CBRE on this sale of the 62,400 SF building located at 833 W. Jackson Boulevard and the 91,100 SF property located at 322 S. Green Street. The buyer was selected during a competitive six-month bid process.
UI previously owned both properties, sold them in 2005 to a private investor and reacquired them in 2013. Urban recognized a value-add opportunity and reinvested a significant amount of capital to renovate the buildings' exteriors, hallways, lobbies, restrooms and vacant spaces in addition to bringing numerous building systems into compliance with the city of Chicago's building code. These efforts turned the 55% occupied portfolio at the time of purchase to 96% in less than 18 months.
With the significant changes that this submarket has undergone over the past couple of years, UI felt there was an opportunity to market the properties to other investors seeking quality loft-style office buildings in a flourishing market. The new owners recognize that businesses continue to seek this type of product which provide creative environments and thereby further attracting the city's young and talented workforce. This dynamic is creating interesting investment opportunities in the local office market that Urban believes will continue well into the future.