Fresh capital available for building upgrades, new amenities and leasing efforts
Glenstar, a Chicago-based commercial real estate developer, owner and operator, along with a high-net-worth private investor, has acquired 200 South Wacker, a 40-story Class A office tower in the West Loop. The transaction closed on Jan. 29, and Glenstar has taken over as the building’s asset and property manager, with The Telos Group, known for its success in Chicago’s office market, appointed as the exclusive leasing agent for the 761,775-square-foot property.
200 South Wacker is ideally positioned along Wacker Drive and the Chicago River minutes from Chicago Union Station, making it an attractive option for tenants seeking to draw talent from both the city and suburbs. Designed by Harry Weese Associates and constructed in 1981, the building features generous setbacks between neighboring buildings, offering excellent views and abundant natural light that flows throughout every floor of the building.
“We’re excited to reposition this architecturally significant and well-located property by investing in property upgrades and leasing efforts,” said Michael Klein, principal of Glenstar. “Our planned improvements will deliver a high-quality office environment that meets the evolving needs of tenants.”
Glenstar and its equity partner are allocating approximately $30 million for building fully furnished move-in-ready spec suites, modernizing common areas enhancing amenities and spending on base-building capital improvements.
“Our all-cash ownership structure gives us the ability to adapt quickly to market demands and offer tailored solutions for tenants,” Klein added. “This flexibility allows us to create a responsive and tenant-focused approach that stands out in the market.”
Glenstar’s property management team will work on-site to support tenants and enhance their experience through Glenstar Connect, an app-based platform designed to foster engagement and community within the building. Current amenities include a rooftop deck, tenant lounge, conference center, fitness facility and a Mojo Coffee shop in the lobby.
This acquisition builds on Glenstar’s recent success in revitalizing office properties, including the recapitalization of Presidents Plaza near O’Hare International Airport. At Presidents Plaza, Glenstar’s flexible capital structure and investments into the building have already spurred significant leasing activity.
“We remain confident in the future of high-quality office space and are committed to creating dynamic environments that allow tenants to thrive,” Klein said.
About Glenstar:
Glenstar is a Chicago-based national commercial real estate firm specializing in industrial development, reimagined office and multifamily properties. Founded in 2004 by Michael Klein, along with Rand Diamond, Glenstar has successfully developed or redeveloped more than $2 billion in commercial space comprising 10 million square feet across the U.S. Its nimble, tenant-focused approach and vertically integrated structure allow Glenstar not only to pursue and execute opportunistic projects, but also to oversee and manage them seamlessly.
200 South Wacker: Glenstar and a high-net-worth private investor have taken ownership of 200 South Wacker in the business district of Chicago’s West Loop and are well-capitalized to fund tenant improvements, amenity and common area upgrades as well as other building enhancements.