A New York developer with multiple projects underway across downtown Chicago is planning to develop another office property in the West Loop.
Vista Property Group, whose cofounder is Hymie Mishan, has proposed building a 15-story boutique office building at 640 West Randolph Street, a block west of a similar development it completed in March, Crain’s reported, citing 42nd Ward Alderman Brendan Reilly’s newsletter.
While office absorption has slowed down, with record vacancy rates in downtown Chicago around 20 percent, and demand for such real estate is evolving due to work-from-home trends, some developers — including RXR and TF Cornerstone in New York, as well as Fulton Market developers such as Fulton Street Cos. — are nonetheless making progress on huge new buildings.
Like those proposals, Vista’s project will also try to capitalize on the pandemic-era trend of tenants flocking to new high-end buildings.
The developer has leased 63 percent of its first building of a similar scale at 609 West Randolph Street, showing its gambles are paying off. The new building is being developed on speculation, meaning Vista didn’t secure any tenants in advance.
It will be designed by Antunovich Associates to look like the first. Vista needs a zoning change for the 12,500-square-foot site, which is currently a surface parking lot.
The firm has made waves in Chicago recently. Vista Property Group paid $26 million for two properties on adjacent blocks at 370 North Morgan Street and 413 North Carpenter Street in November 2021. In addition, the developer scored a $59.8 million construction loan to back a 21-story apartment development in Chicago’s River North neighborhood back in July.
The new building will have small floor plans so smaller companies will be able to lease an entire floor without having to share space with another tenant.
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