A nearly century-old office tower in Chicago is for sale as a potential conversion to apartments or a hotel near Millennium Park and North Michigan Avenue shops.
Cushman & Wakefield brokers have been hired to market the 17-story tower at 70 E. Lake St., according to a brochure. Completed in 1927, the building with gothic revival and art deco influences is about 63% leased as offices, according to the Cushman & Wakefield materials.
Brokers are framing the deal as an opportunity to pay in the range of $10 million to $12 million for the property and begin clearing out mostly short-term tenants for a conversion, according to a person familiar with the offering.
It is the latest example of older, high-vacancy office properties in Chicago and other cities being positioned for new uses amid historically low demand for corporate space.
The Lake Street property is near some of the city’s top tourism attractions and largest hotels. Just a few feet away, Virgin Hotels’ original hotel at 203 N. Wabash Ave. is in the process of being converted into a Sports Illustrated-themed timeshare resort.
The building at 70 E. Lake hasn’t changed hands since a $3.1 million sale in 1993, according to Cook County property records. It was last financed with a $6 million loan in 2017, the records show.
All but two of the tower’s leases include landlord termination rights, meaning most of the tenants could be moved out quickly for a residential or hospitality conversion, according to the brochure.
Chicago-based Ansonia Properties, the manager of the property for the family office that owns it, didn't immediately respond to a request to comment from CoStar News.
The vintage office tower is next to an unusual parking garage at 60 E. Lake St. that is known locally as the Rolls-Royce Garage. Designed by architect Stanley Tigerman, the teal-colored art deco structure’s exterior resembles the front of a classic luxury car.
That property sold last year for just under $12.4 million.
For the record
The seller is represented by Cushman & Wakefield brokers Tom Sitz, Cody Hundertmark, Kelsey Berry and Dirk Riekse.