303 East Wacker Drive
CHICAGO, IL
Investment Summary
Cushman & Wakefield U.S., Inc. has been retained as exclusive advisor and agent to offer for sale to qualified investors 303 East Wacker Drive (the “Property” or “Offering), a Class A, 30-story, 943,581 square foot office tower located directly along the Chicago River in the heart of downtown Chicago, Illinois. Originally designed by modernist architect Joseph Fujikawa, the Building’s sleek and timeless design adheres to the Miesian principals of strict orthogonality, grids and rectangular form that succeeds in combining efficiency with architectural beauty. After acquiring the building in 2018, current ownership completed a renovation and reimagination of the Building as a modern place to work and gather. Now complete, the $32.3 million ($34/SF) restoration and modernization has transformed the building from inside out – with a bright, airy lobby, refreshed common corridors, unique community gathering spaces, and a brand-new amenity center encompassing the Building’s entire 30th floor.
Originally constructed in 1979 with the recent renovations completed in 2020, 303 East Wacker is perfectly positioned today to capture continued tenant demand as a result of intrinsic competitive advantages – including protected panoramic views in all directions and efficient rectilinear floor plates – coupled with the Building’s transformative renovation. The 2020 repositioning has completely transformed 303 East Wacker's market perception amongst both tenants and advisors, and as thus resulted in significant recent leasing success totaling nearly 230,000 square feet since 2023.
Investment Highlights
- Timeless & Fully Modernized Riverfront Office Tower. Developed in 1979 featuring timeless “Miesian” design, 303 East Wacker is a 30-story, 943,581 square foot office tower approximately 77% leased to a diverse collection of 51 tenants.
- Pure Play, Lease-Up Business Plan with Significant Recent Leasing Success. Due to extensive, top-of-the-market renovations completed in 2020, nearly 230,000 square feet of new or renewal leasing has been completed since 2023.
- Ongoing Flight-To-Quality: The “Haves” Versus The "Have Nots". Class A office space in the Chicago CBD continues to drive new leasing activity, which has accounted for over 60% of all CBD leasing activity 2024 year-to-date.
- Downtown Chicago Riverfront Office Outperformance. Riverfront office buildings have historically outperformed the broader Chicago CBD market in both occupancy and rental rates and with no remaining riverfront office development sites available 303 East Wacker is further insulated from the threat of new supply.
- Dramatic Basis Reset & Discount to Replacement Cost. Market rental rates at 303 East Wacker represent a significant discount to rental rates required to justify new development today and will allow a new owner to aggressively compete for new and renewal leasing.
- Continued Return-To-Office Recovery in Downtown Chicago. Chicago is amongst the best performing office markets nationally relative to return-to-office.
- Significant Ongoing Development in the Immediate Area ($5B+ Total). The area surrounding 303 East Wacker in all directions continues to see significant new development activity across property uses, including among office, multifamily and hospitality properties with more than $5 billion in development either recently completed or underway within a four-block radius of the Property.
Property Summary
Year Built / Renovated
1979 / 2020
Stories
30
Gross Rentable Area
943,581 SF
Avg. Floor Plate Size
31,453 SF
Occupancy (as of 08/01/2024)
76.9%
Occupancy (Excluding Known Vacates)
59.8%
# of Covered Garage Spaces
282
# of Tenants
51
Weighted Avg. Remaining Lease Term
4.9 Years
(1) Gross rentable area based on the BOMA 2017 Method A. Analysis modeled growth for occupied spaces and vacancies based on a capped load factor as determined by ownership totaling 926,545 SF.
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