Real estate investment trust Ventas is negotiating a lease to move its headquarters to a 60-story office tower along the Chicago River in a deal that would continue that property’s comeback from the loss of two massive tenants.
Ventas is in talks to lease about 50,000 square feet at 300 N. LaSalle St., according to people familiar with the deal.
That is about the same amount of space the REIT now leases about a block away in the 47-story tower at 353 N. Clark St. It would be a relatively straightforward deal at a time when many corporate tenants are looking to slash their space as leases expire or via subleases.
The Ventas deal has not been completed, though, and it could still fall apart at a fragile time for real estate deals throughout the country.
If the lease is completed, it would be the second-largest tenant added since property owner Irvine Co. last year announced plans to make $30 million in upgrades to the trophy tower, including an expansion of the Chicago Cut restaurant at the base of the building, improvements to the fitness and conference centers, and refurbished indoor and outdoor spaces overlooking the river.
That plan was unveiled earlier this year as Newport Beach, California-based Irvine braces for the loss of law firm Kirkland & Ellis and global consulting firm Boston Consulting, which lease more than 785,000 of the tower’s 1.3 million square feet. Those firms are moving to the nearby 60-story Salesforce Tower and a 24-story tower under construction in the Fulton Market district, respectively.
Irvine is among several owners of office towers making big upgrades to stand out when office demand has been historically low.
Trophy properties along the river have continued to outperform the challenging leasing market in Chicago — even those, like 300 N. LaSalle, which are losing major tenants to other high-end towers.
In one big victory since announcing upgrades to 300 N. LaSalle, Irvine has landed a 148,000-square-foot lease with law firm Winston & Strawn, which is moving from another 60-story riverfront tower, the former Leo Burnett Building at 35 W. Wacker Drive.
An existing 300 N. LaSalle tenant, private equity firm GTCR, earlier this year expanded its space by about 11,000 square feet to 86,000 square feet while also extending its lease by five years.
Irvine declined to comment on talks with Ventas, and the REIT did not respond to requests for comment from CoStar News.
Ventas, led by Chairman and CEO Debra Cafaro, invests in healthcare and senior housing properties.
The REIT owned 1,381 total properties in the United States and Canada, including 821 senior housing properties, as of the third quarter of this year, according to its website.
For the Record
Ventas is represented by JLL brokers Matt Carolan and Meredith O’Connor. The landlord is represented by Irvine brokers Greg Tait, Maggie Brophy, Jamion Hartley and Hannah Fahey.