Harbor Group International to consolidate leasing efforts in Chicago
Harbor Group International appoints Avison Young to lease 2 North LaSalle and One South Wacker; significant upgrades underway
CHICAGO, IL, Jan. 22, 2014 /PRNewswire/ - Harbor Group International announced today that it has appointed Avison Young as the exclusive leasing agent for two iconic downtown office properties in Chicago.
Avison Young will represent Harbor Group in the leasing of space at 2 North LaSalle and One South Wacker. The two properties comprise nearly 2 million square feet (msf) of combined leasable area. Harbor Group has made many recent upgrades to the buildings. Improvements underway at One South Wacker include exterior and lobby renovations plus a mezzanine level tenant amenity floor with new conference facilities, tenant lounge and fitness center.
"We look forward to working with Avison Young as we market these high-valued assets," comments Jordan Slone, Chair and CEO of Harbor Group International. "With the planned lobby renovations and amenity package upgrades at One South Wacker, the full amenity package at 2 North LaSalle, our long-time presence in Chicago, and the experience of the Avison Young leasing team, the properties are well-positioned to outperform the marketplace in downtown Chicago."
2 North LaSalle is a 26-story, 713,030-square-foot (sf) office tower located at the northwest corner of LaSalle and Madison Streets. The property features 28,000-sf floorplates and a stable roster of high-quality tenants, including Levenfeld Pearlstein, LLC, Neal, Gerber & Eisenberg LLP, Computershare and Grind. Amenities include a state-of-the-art conference room, restaurant, bank, retail shops, concierge service, sundry shop, bike storage room and yoga room. Recent upgrades at the property include elevator cab modernization, corridor and restroom upgrades, and aesthetic improvements to the building's lobby.
One South Wacker is a 40-story, 1.195-msf office building located at the corner of Madison Street and Wacker Drive in Chicago's prestigious West Loop submarket. Amenities include a 135-car parking garage, fitness center, bike storage room, casual dining, the well-known Lloyd's restaurant, a bank, retail shop and convenience store. The building has three distinctive floor plans due to the tiered setback design, which allows the building to cater to full-floor tenants of varying sizes. Major tenants include RSM McGladrey and Aetna.
"This assignment comes at an opportune time as market conditions improve and Harbor Group completes the upgrades to the buildings," says Michael McKiernan, Avison Young Principal and Managing Director of the company's Chicago office. "Avison Young is honored to be working with Harbor Group, an owner with a long and successful history in Chicago. Harbor Group's significant capital improvement projects within its downtown portfolio will enhance the overall tenant experience within these fine assets."
Avison Young's Chicago leasing team includes Principals Michael Curran, Brad Despot and Eric Myers. The company will provide comprehensive leasing, advisory and market analysis services to Harbor Group in order to better serve existing tenants and attract local, national and international companies seeking space in the downtown core.
"Combining the leasing for these two prestigious properties underscores the strength of the assets' shared ownership and creates a targeted marketing campaign to build awareness for the portfolio of buildings," says Curran. "By marketing the assets together, we can strategically leverage the common amenities and location advantages of the two office towers."
2 North LaSalle and One South Wacker are currently 79% and 82% leased, respectively.
The Chicago office market recorded an overall year-end 2013 vacancy rate of 14%, which varied little throughout 2013. Healthy leasing activity in both the central business district (CBD) and suburban markets resulted in positive absorption in the last several quarters of 2013. Leasing activity in the CBD experienced an uptick in the fourth quarter of 2013 with tenants leasing more than 1.8 msf, bringing the 2013 total to 7.6 msf leased in the CBD.
"Market conditions generally continue to improve in the U.S. as we begin 2014, and unemployment rates are declining both nationally and in Chicago. These trends, along with a marked increase in leasing activity in Chicago, suggest that the vacancy rate in Chicago's central business district will continue to decrease through 2014," adds Curran. "Look for increased rental growth through year-end with concessions remaining flat."
About Avison Young
Avison Young is the world's fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 1,500 real estate professionals in 54 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties. http://www.avisonyoung.com
About Harbor Group International, LLC
Harbor Group International, LLC controls an investment portfolio of approximately $3.6 billion including in excess of 8.3 million square feet of office space throughout the United States and the United Kingdom, and in excess of 24,500 apartment units in the United States. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York and Tel Aviv.
• Editors/Reporters: please click on links to view and download photos of 2 North LaSalle and One South Wacker
For further information/comment/photos:
- Sherry Quan, National Director of Communications & Media Relations, Avison Young:
604.647.5098; cell: 604.726.0959
- Michael McKiernan, Principal and Managing Director, Chicago, Avison Young: 847.849.1903
- Michael Curran, Principal and Managing Director, Chicago, Avison Young: 312.448-7950
Avison Young was a winner of Canada's Best Managed Companies program in 2011 and requalified in 2012 to maintain its status as a Best Managed company.
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SOURCE Avison Young Commercial Real Estate (BC)