550 W Washington Blvd, Chicago, IL, 60661-2595, US

550 West Washington

Attributes

Building area net

372,596 sf

Year built

2000

Floors

Occupancy

31%

WAULT

2.9 years

Asset description

Jones Lang LaSalle (Illinois), L.P. (“JLL”) as the exclusive advisor, presents the opportunity to acquire the 100% fee simple interest in 550 West Washington (the “Property”), a 372,596 RSF, 16-story class-A office building located in Chicago’s West Loop. Constructed in 2000, 550 West Washington benefits from superior connectivity and accessibility given its prime West Loop location that puts it one block from Ogilvie Transportation Center and Union Station, the major commuter train stations linking the city to surrounding suburbs.

At 31% leased with 2.9 years of remaining average lease term (“WALT”),⁽¹⁾ the Property provides an investor the opportunity to substantially increase NOI through the lease up and strategic repositioning of a nearly unencumbered boutique office asset. The Property contains the only contiguous block of vacancy exceeding 200,000 RSF amongst buildings constructed post-2000 in the West Loop submarket. Paired with its flexible 24,500 RSF floor plates, the Property is well positioned to capture tenants of all size requirements in the market. All inquiries regarding this value-add office asset should be directed to JLL.

(1) As of May 1, 2024

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Investment highlights

Rare Large, West Loop Contiguous Block Positioned to Capture Active Tenancy

Significant opportunity exists to lease up over 237,000 square feet of a contiguous vacancy block on floors 2-12.

Nearly Unencumbered Asset Represents Blank Canvas for Investor

Unrivaled Transit- Oriented Location

Constructed in 2000, 550 Washington benefits from superior connectivity and accessibility given its prime West Loop location that puts it one block from Ogilvie Transportation Center and Union Station, the major commuter train stations linking the city to surrounding suburbs.

Opportunity to Acquire Asset at Substantial Discount to Replacement Cost

550 Washington represents an exceptional opportunity to acquire a modern, Class-A office asset at a significant discount to replacement cost in an irreplaceable Chicago CBD location. Due to the dearth of available land sites and the rising cost of construction, the replacement cost of a similarly located asset would be more than $750 per square foot. New development costs would imply net rental rates of approximately $64 Net per rentable square foot.