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Citicorp Plaza office complex placed on sales block
Citicorp Plaza, a three-building complex near O'Hare International Airport, was put on the market Monday by its owner, New York-based Apollo Real Estate Advisors LP, industry sources said.
The 600,000-square-foot complex was built in the 1980s and renovated in the 1990s, according to CoStar Realty Information Inc.
The buildings could fetch as much as $100 million, some industry sources believe.
The property is expected to be about 90 percent leased by the end of the year.
Apollo did not return a call seeking comment.
The sales broker is Paul Lundstedt Cushman & Wakefield of Illinois Inc. The leasing broker is Rob Graham of CB Richard Ellis.
TENANT'S MARKET: In the downtown office market, it has been a good year for landlords, but bargain-seeking tenants have some appealing choices, with more on the way, according to a new study by Jones Lang LaSalle Inc., a Chicago-based real estate firm.
Sizable businesses searching for a new address are likely to find the most cost-effective options in low-rise space, or offices from the 25th floor down. Usually, such tenants would focus on space in a building categorized as Class B, nice but not the newest construction or the best location. But with a wealth of new buildings going up or being planned, tenants will have more leverage with landlords of Class A buildings, said Jeff Liljeberg, a managing director at Jones Lang.
"We think there will be a shift to more of a tenant's market in 2009 in low-rise Class B and all Class A space," he said.
The downtown vacancy rate for direct leases is 10.8 percent overall, with 10 percent of Class A space available, 9.9 percent of Class B and 13.1 percent of Class C, Jones Lang reports.
Net absorption for this year will amount to about 2.8 million square feet, good but not as good as 2006 when 3.8 million more square feet were taken off the leasing market than put back on, the real estate firm reports.
From now through 2010, tenants are likely to leave about 12.5 million square feet of office space, comprising 9.8 million square feet of Class A space and 2.7 million square feet of Class B space. At the same time, developers have, or soon will have, 6.7 million square feet of new offices under construction. An additional 14.3 million square feet is being considered.
By mid-2011, when much of the space in development will be delivered, the direct vacancy rate could range from 10.3 percent to 14.6 percent, depending on job growth and the resulting demand for offices, Liljeberg said.
FIFIELD BUILDING: The Fifield Cos. will break ground this month on two apartment towers with a total of 847 units at its $750 million K Station development, the company announced Monday. The location is bounded by Kinzie, Clinton, Halsted and Wayman Streets and will link the West Loop and River North areas.
ROOSEVELT GRANTS: The Roosevelt University Chicago School of Real Estate will start a $100,000 scholarship fund this spring for Latino students, who will receive grants of $5,000 a year, the school said. Hipolito "Paul" Roldan is establishing the scholarships from his MacArthur Foundation Genius award.