Onni Scores Legal Aid Lease in Loop Office Downsize

Chicago’s largest legal nonprofit is trading its aging office in the Loop and relocating nearby along LaSalle Street to newer space in Onni Group’s 30-story tower.

Legal Aid Chicago is finalizing plans to relocate from its 55,000-square-foot office at 120 South LaSalle Street to a more compact 32,000-square-foot space at 200 North LaSalle Street, Crain’s reported, citing people familiar with the negotiations. Its current lease at Ravelin Properties 23-story building is set to expire in early 2027.

The nonprofit follows in the footsteps of other high-profile departures from aging LaSalle Street buildings, such as Bank of America, BMO Harris, and more recently, Blue Owl Capital, James Hardie and Chicago Title Insurance.

The move also aligns with the growing interest in the northern end of LaSalle Street, where tech giant Google is establishing its Midwest headquarters at the Thompson Center.

Legal Aid’s lease represents a boost for Onni Group, whose chief of staff is Duncan Wlodarczak. The Vancouver-based firm has inked several recent deals at its 653,000-square-foot tower, benefiting from its investment in property improvements, including a new amenity space.

Onni Group closed a $170 million refinancing deal for the building with HSBC last year, following the initial financing the same bank provided in 2012. Onni is also currently overseeing a $130 million renovation of the 853,000-square-foot building at 225 West Randolph Street, also known as The Bell.

Legal Aid’s departure creates a notable vacancy for Ravelin, led by CEO Shant Poladian. Ravelin, formerly known as Slate Office REIt, also faces an imminent loan deadline, compounding the firm’s challenge. CIBC, which occupies about 45 percent of the 656,000-square-foot building, also provided a $101 million mortgage that helped finance Ravelin’s $146 million purchase of the property in 2018, adding financial pressure during this uncertain time. Ravelin’s loan matures in August.

With the rise of remote work and changing habits, many downtown landlords in Chicago are finding it difficult to adjust as companies reconsider their office space requirements. The office vacancy rate in the Loop stood at 26.3 percent in the fourth quarter, marking the 10th consecutive quarter of rising vacancies for downtown landlords.

— Andrew Terrell