A Chicago investment banking firm is moving from one Central Loop office building to another.
Loop Capital Markets signed a lease for 37,000 square feet in the building at 425 South Financial Place, Crain’s reported. The new office is about the same size as the space it’s leaving at 111 West Jackson Boulevard.
The move to the CIM Group-owned building is a good sign for the historic financial district and its landlords as many large banks and financial institutions are moving to new or renovated buildings in the West Loop.
Older office buildings in the Central Loop are experiencing high vacancy rates, and the larger Downtown market reached an all-time high mark of 21.3 p-ercent in the third quarter, according to CBRE data. Landlords in the area are pinning hopes on Google’s plan to revamp the James R. Thompson Center and move thousands of employees to the downtown space, anticipating the move will increase foot traffic and draw more office tenants.
Los Angeles-based CIM Group has owned the 40-story office tower which previously had an address of 440 South LaSalle Street, since 2016. The company paid $189 million for the building, which was 72 percent leased at the time. CIM Group’s renovation of the building’s lobby relocated the main entrance to Financial Place.
The owner of the building at 111 West Jackson Boulevard, New York-based Melohn Group, took a hit on its 68-percent leased property, which it listed for sale in 2019. Melohn bought the building for $135 million in 2013 and spent an additional $38 million in renovations and tenant improvements.
Cushman & Wakefield’s Vice Chairman Ari Klein and Avison Young’s Principal Chris O’Leary represented Loop Capital in its new lease. Kelsey Scheive and Kelsey Morgan of CBRE oversee leasing at the building.
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