Stripe Expands Lease in Chicago Tower Facing Foreclosure

Online payments company Stripe is expanding its Chicago footprint, signing a deal to double its office space at 350 North Orleans Street and extend its lease until 2031, a crucial victory for the distressed building as its landlord prepares to hand the keys over to its lender.

The move signals long-term growth for the fintech firm, even as its landlord, Blackstone, faces foreclosure on the building.

San Francisco–based Stripe will add more than 44,000 square feet to its existing lease, Crain’s reported, bringing its total footprint in the River North tower to nearly 89,000 square feet.

The property was put up for sale by its lender’s special servicer last year but failed to attract a buyer. Now, as KeyBank manages the foreclosure process, Stripe’s lease renewal could give the building a much-needed boost in occupancy.

While many landlords have opted to offload struggling properties at steep discounts, some — like KeyBank — are investing in tenant retention to stabilize assets before selling. Stripe’s real estate play suggests some firms still see value in committing to downtown office space, even as broader market uncertainty lingers.

Stripe’s expansion bucks the city’s broader office downsizing trend, which saw downtown Chicago shed 1.6 million square feet of tenant space in 2024.

Other commercial tenants have recently leveraged softened demand by expanding office space, including New York-based investment firm Blue Owl Capital, which doubled its footprint, adding 27,000 square feet to its lease in a West Loop office tower at 150 North Riverside Plaza. Law firm Goldman Ismail Tomaselli Brennan & Baum also leased 43,000 square feet this week at 191 North Wacker Drive.

But the deal comes as 350 North Orleans Street faces financial hardship — Blackstone defaulted on a $310 million loan tied to the property, leading to a foreclosure lawsuit filed by Goldman Sachs in late February.

The private equity giant had already written down its investment in the building to zero, citing rising interest rates and a struggling downtown office market.

The 1.3 million-square-foot building, which was 65 percent leased as of late 2023, has been in distress as Chicago’s downtown vacancy rate persists at a record 26.3 percent, marking the 10th consecutive quarter of rising vacancies.

— Judah Duke