The investors that bought and rebranded one of the most recognizable towers on Chicago’s skyline have landed a new-to-market tenant as part of a wave of new leases.
Economic consulting firm Econic Partners has leased 18,724 square feet in the tower at 150 N. Michigan Ave., according to the building’s owners and their leasing firm. It is the first long-term space in Chicago for the firm, which was formed early this year and is backed by Goldman Sachs Alternatives.
The deal is a positive both for the Michigan Avenue building’s owners — Italy’s billionaire Garavoglia family, the controlling shareholder of the Campari Group spirits empire, and their local asset managers, R2 and Anagram Capital — and the downtown Chicago office market, which is landing a new tenant to Chicago amid historically low demand for office space.
The tower sold for $60 million, just under half the previous price, in early 2024.
The ownership group recently rebranded the tower as the Diamond, a reference to the sloped, diamond-shaped top that overlooks Millennium Park and is a staple on Chicago skyline shots.
Econic Partners’ lease on the 28th floor comes as the Italian investor makes big investments in the tower to fill large blocks of vacancy.
In other recent deals, workspace provider Regus leased more than 18,000 square feet on the eighth floor and law firm Connolly Krause leased more than 8,000 square feet on the 10th floor, according to Madison Rose, the firm that has the leasing assignment at the Diamond.
Another 58,000 square feet in leases are currently in lease, according to Madison Rose’s Matt Pistorio and Abby McFadyen.
Ongoing upgrades to the building’s common areas and amenities have helped the building stand out despite overall lower demand for spaces on the eastern edge of the Loop, away from most commuter train stations, they said.
“The ownership group from Italy sees this building as a special, trophy asset, and the anticipation of the new amenities has gotten people excited,” Pistorio told CoStar News. “This is one of the hottest buildings in the market, which I think a lot of people would be surprised to hear because of the location.”
Because of the tower’s proximity to tourist attractions such as Millennium Park, the Magnificent Mile and Navy Pier, there are several large hotels nearby. That was a key factor for Econic Partners, which will have clients visiting the Chicago office from throughout the country and world, McFadyen said.
It’s not known how many employees are expected to work in the new space. Econic Partners did not immediately respond to a request for comment from CoStar News on Thursday.
The firm, whose executives include several former FTI Consulting employees, also has offices in Washington, D.C., Los Angeles, Boston and Oakland, California.
Econic Partners' team of economists provides analysis for matters including antitrust litigation, mergers, regulatory issues and other economic matters.
The company is now in co-working space nearby, with plans to move into short-term space at 150 N. Michigan within the next week, McFadyen said.
Econic Partners will move into the long-term leased space next year, she said.
For the record
The tenant was represented by CBRE brokers Brad Serot and Tony Coglianese. The landlord was represented by Madison Rose brokers Matt Pistorio, Adam Pines and Abby McFadyen.