Riverside, Convexity Score New Lease Signing

John O’Donnell’s new office tower brought in a tenant on a downtown Chicago deal that isn’t a downsize for once.

Investment firm Antares Capital expanded its commercial real estate footprint by nearly 25 percent, signing a lease to occupy nearly 88,000 square feet across the 41st through 43rd floors in the 52-story BMO Tower developed by O’Donnell’s firm Riverside at 320 South Canal Street, Crain’s reported.

That’s up from Antares’ current 70,000-square-foot lease at Spear Street Capital’s 500 West Monroe Street, which is set to expire next year.

The news should provide a healthy dose of optimism among building owners who have seen a slew of tenants cut their offices rather than expand. Vacancy rates soared to record highs earlier this year, and companies, including Meta and Salesforce, underwent massive layoffs, giving them no choice but to shed big chunks of space by putting it up for sublease.

Antares CEO Timothy Lyne said in a statement that the increased square footage “accommodates our growth plans and addresses the many different ways in which our employees work.”

With the Antares deal, the 320 South Canal tower is just 68 percent leased, down from the 82 percent average for Class A properties, albeit the building only opened in 2021. Cushman & Wakefield’s Michael Sessa, Dan Maslauski and Jack Deroche represented Antares in leasing negotiations, while Riverside was represented in-house by Christy Domin and Drew Neiman.

The lease signing marks another trend of companies favoring new buildings over the older ones in an attempt to lure employees back into the office.

Riverside’s leasing team said they “continue to see strong interest in 320 South Canal since it provides an amenity rich, health focused, well-located property that creates a desirable environment for the employees of a firm like Antares,” the firm’s Rafael Carreira said in the statement.

Riverside also developed the office towers at 110 North Wacker Drive, the new Chicago home of Bank of America that was evaluated at more than $1 billion by a transaction amid the pandemic, as well as 150 North Riverside Drive.

— Quinn Donoghue