601W Secures Major Tenant for Redeveloped Canal Station Building in Chicago
New York real estate developer 601W has successfully secured its first tenant at the revitalized Canal Station in Chicago. R.M. Chin & Associates, a project management firm, has leased 15,400 square feet in the former Northern Trust office building at 801 South Canal Street. The lease terms have not been publicly disclosed.
The significant investment of around $265 million by 601W has been dedicated to the transformation of the property into a modern, multi-tenant office space. The aim is to attract tenants looking for amenity-rich environments in the wake of the remote work era. Additionally, the Canal Station has been enhanced with an 8,000-square-foot outdoor terrace and a revamped lobby, contributing to its allure.
The strategic location allows R.M. Chin to benefit from improved collaboration and innovation opportunities while maintaining proximity to Chicago's central business district. This move counters the idea of the building being isolated, emphasizing the firm's local familiarity as a key factor in their decision to establish their presence at Canal Station.
Key Takeaways
- 601W has successfully secured R.M. Chin & Associates as the first tenant at Canal Station, leasing 15,400 sq ft.
- The developer's investment of $265 million has transformed the former Northern Trust building into a modern office space.
- Canal Station offers appealing amenities and competitive annual rents at $45 per sq ft.
- R.M. Chin's lease supports 601W’s vision of Canal Station as an attractive office location in Chicago’s southwest Loop.
- The building was acquired by a 601W venture for $68 million in January 2020, preceding Northern Trust’s relocation.
Analysis
601W’s investment aligns with the demand for amenity-rich spaces in the post-remote work landscape. R.M. Chin's leasing decision sets a benchmark for rents and amenities, impacting the local commercial real estate market. Successful tenant retention could drive further investment and tenant interest, potentially reshaping the area's commercial landscape and impacting financial instruments tied to real estate in Chicago.
Did You Know?
- 601W: 601W is a prominent New York-based real estate investment firm, known for its significant investments in commercial properties and historic building redevelopments.
- Canal Station: It refers to the redeveloped property at 801 South Canal Street in Chicago, previously known as the Northern Trust office building. The space has been transformed into a modern, multi-tenant office location by 601W, targeting post-remote work era businesses.
- Southwest Loop Area: This neighborhood in Chicago near the central business district has gained popularity due to accessibility, redevelopment projects, and the presence of commercial and cultural amenities, making it an attractive location for businesses and real estate investments.