CHICAGO | 725 W Randolph | 700 FT | 45 FLOORS

[ardecila]

Originally Posted by k1052

Sure, but I'm not even thinking that's likely to go office either like the previous plan. With so many more aggressive players in the submarket and their relative conservative nature I somewhat doubt Related ultimately ends up jumping in that particular pool. Though at their current...er...deliberate rate of development that parcel would not see construction until probably 2030 so who knows.

I've heard Equinox is in pretty dire straits. I don't see them doing a hotel. If anything the hotel would probably be a different operator.

I don't know why you think they would kill the office space when we continue to see new office starts in the Fulton area. Hotel seems like the weakest part of the program, so if you're gonna dump something I think it would be that. You're right that there's a lot of competition for office, but this building is a fairly small one so a single modestly sized lease is all they need to get it going.

[mh777]

Originally Posted by ardecila

I've heard Equinox is in pretty dire straits. I don't see them doing a hotel. If anything the hotel would probably be a different operator.

I don't know why you think they would kill the office space when we continue to see new office starts in the Fulton area. Hotel seems like the weakest part of the program, so if you're gonna dump something I think it would be that. You're right that there's a lot of competition for office, but this building is a fairly small one so a single modestly sized lease is all they need to get it going.

Equinox in dire straights? Actually?

[k1052]

Originally Posted by ardecila

I've heard Equinox is in pretty dire straits. I don't see them doing a hotel. If anything the hotel would probably be a different operator.

I don't know why you think they would kill the office space when we continue to see new office starts in the Fulton area. Hotel seems like the weakest part of the program, so if you're gonna dump something I think it would be that. You're right that there's a lot of competition for office, but this building is a fairly small one so a single modestly sized lease is all they need to get it going.

If they're pushing ahead in Detroit with an Equinox hotel I have to believe they haven't scuttled Chicago.

Related Midwest seems far more comfortable doing high end residential and in the west loop where office leasing is going to be extremely competitive I'm just not sure how much interest they really have in jumping in to that. Could be wrong but we'll see.

[lakeshoredrive]

I wonder when we will get the updated rendering of the building.

[Flaccer05]

https://www.chicagobusiness.com/commercial-real-estate/west-loop-property-sold-related-midwest

Related Midwest buys West Loop property across from planned tower

"The move signals a possible change to the developer's plan for one of the West Loop's tallest skyscrapers, potentially positioning it to lure JPMorgan Chase to the neighborhood."

"Buying the 800 W. Washington property could simply be a move to control more land around the planned development as Fulton Market and the West Loop continue to grow. But sources familiar with the transaction said Related will likely look to transfer the unused development rights from its newly acquired site to the 725 W. Randolph property to be able to build an even larger project overlooking the Kennedy Expressway."

[twister244]

Originally Posted by Flaccer05

https://www.chicagobusiness.com/commercial-real-estate/west-loop-property-sold-related-midwest

Related Midwest buys West Loop property across from planned tower

"The move signals a possible change to the developer's plan for one of the West Loop's tallest skyscrapers, potentially positioning it to lure JPMorgan Chase to the neighborhood."

"Buying the 800 W. Washington property could simply be a move to control more land around the planned development as Fulton Market and the West Loop continue to grow. But sources familiar with the transaction said Related will likely look to transfer the unused development rights from its newly acquired site to the 725 W. Randolph property to be able to build an even larger project overlooking the Kennedy Expressway."

Interesting.....

So - In the event of transfer of unused development rights, Related could up the size of this proposal? I've never heard of such a thing as transfer of unused development rights - hence my curiosity.

That makes sense if Related knows Chase is thinking about building a shiny new building across the street (hopefully a thin tall beautiful building and not a fat box).

[mh777]

Originally Posted by twister244

Interesting.....

So - In the event of transfer of unused development rights, Related could up the size of this proposal? I've never heard of such a thing as transfer of unused development rights - hence my curiosity.

That makes sense if Related knows Chase is thinking about building a shiny new building across the street (hopefully a thin tall beautiful building and not a fat box).

Anybody but Related... ahhhh.

[Randomguy34]

Originally Posted by twister244

So - In the event of transfer of unused development rights, Related could up the size of this proposal? I've never heard of such a thing as transfer of unused development rights - hence my curiosity.

It's common in other cities, and even developments in Chicago neighborhoods, since the floor area ratio (FAR) of the zoning code ultimately sets the bulk size of a building. It's not too common in downtown Chicago though cause the zoning code already allows for developers to buy large amounts of FAR.

[UrbanDweller98]

Would Chase really chose Randolph over 130 N Franklin or 401 S Wacker?

[r18tdi]

Originally Posted by UrbanDweller98

Would Chase really chose Randolph over 130 N Franklin or 401 S Wacker?

Hard to say, but 725 Randolph is definitely more exciting than 655 W. Monroe (which is a total snooze by comparison).

[marothisu]

Originally Posted by UrbanDweller98

Would Chase really chose Randolph over 130 N Franklin or 401 S Wacker?

Depends on what a company's priorities are. If they want a tower to stand out in the skyline and also build in a hipper part of town then absolutely this would be better than 130 N Franklin. At most, you build in The Loop and maybe some people from afar can see the top of your tower. Build a 800 foot tower at 800 W Washington and people will be able to see way more of your tower standing apart.

[gebs]

So, do we think that Chase building a huge statement tower in Fulton Market means (1) the accelerated explosion of Fulton Market or (2) the death of Fulton Market or (3) both?

[marothisu]

Originally Posted by gebs

So, do we think that Chase building a huge statement tower in Fulton Market means (1) the accelerated explosion of Fulton Market or (2) the death of Fulton Market or (3) both?

Depends on how you look at it. JPMC has quietly hired TONS of tech workers in Chicago the last 2 to 3 years (as well as other cities like NYC). Being in the West Loop makes a better case in that regard than The Loop just from a marketing perspective alone.

It's not necessarily the stuffy place it used to be, but obviously takes awhile to change perceptions. JPMC has a big office near Hudson Yards as well - not a whole tower or anything but it was an attempt to rebrand some of the tech orgs so people see it differently. That office has 1800+ mostly tech workers. Amazon is in the same building. They also have a huge office in downtown Brooklyn. So yeah, it's not like this is necessarily new. The company has been attempting to rebrand for awhile and also recruit top tech talent the last handful of years.

[Kngkyle]

This location is a little unique in Fulton Market as it's basically no further from the Metra stations than much of the Loop. I could see it being a decent compromise for Chase between the "business" of the loop and the "fun/hip" of Fulton Market.

Would the city let them build a supertall here if they wanted? Back when Related first proposed this development it would have seemed unlikely but today? Maybe. The original site is a little small perhaps, but if they could acquire and combine with that awful drive-thru Bank of America...

[twister244]

Originally Posted by Kngkyle

This location is a little unique in Fulton Market as it's basically no further from the Metra stations than much of the Loop. I could see it being a decent compromise for Chase between the "business" of the loop and the "fun/hip" of Fulton Market.

Would the city let them build a supertall here if they wanted? Back when Related first proposed this development it would have seemed unlikely but today? Maybe. The original site is a little small perhaps, but if they could acquire and combine with that awful drive-thru Bank of America...

I think it's a perfect location for something like this. It's just far enough from Metra, the loop, and CTA, while also being walking distance to the best parts of the West Loop.

Also - Hell yes they should just go for a supertall. At least that would be my hope. It's Chase, so if they are going to put something tall in the area, why not go all out and make it a supertall. My favorite new buildings are ones that stand out around their immediate surroundings and have massive prominence. Big John looked insane when it was first built because it soared so high above everything else around it. I would much rather see a new supertall in a location that builds out the skyline laterally, instead of creating another upward point within the loop.

[rivernorthlurker]

Originally Posted by Kngkyle

This location is a little unique in Fulton Market as it's basically no further from the Metra stations than much of the Loop. I could see it being a decent compromise for Chase between the "business" of the loop and the "fun/hip" of Fulton Market.

Would the city let them build a supertall here if they wanted? Back when Related first proposed this development it would have seemed unlikely but today? Maybe. The original site is a little small perhaps, but if they could acquire and combine with that awful drive-thru Bank of America...

Totally. I am really rooting for this one. It would have a really outsized impact on the surrounding area and neighborhood much like OCS has. That area is prime between the two now big or growing districts - the Loop and Fulton - and it's value and desirability should really be skyrocketing IMO. Getting it off the ground feels like it could kick off activity in the area leading to more development.

[Kngkyle]

If they really want to knock it out of the park they could pay to deck over the Kennedy between Randolph and Washington.. giving their new tower a nice front yard... offer that in exchange for more FAR/height allowance.

[Chi-Sky21]

I say trade the property to whoever owns that Haymarket Pub property. BOOM, they have the entire block then i believe.

[marothisu]

Originally Posted by Chi-Sky21

I say trade the property to whoever owns that Haymarket Pub property. BOOM, they have the entire block then i believe.

Haymarket should definitely stay

[SamInTheLoop]

Originally Posted by UrbanDweller98

Would Chase really chose Randolph over 130 N Franklin or 401 S Wacker?

It's possible - but hopefully not. If chase actually wanted to be at the vanguard, they'd stick with the Loop because by the time any prospective new tower is completed, Google will have opened their huge new LaSalle St offices and that's probably where tech will flow to next - the Loop will be becoming trendy anew, with a bunch of new residential mixed in.

Yes, the expressway adjacent site has views and you can do a signature tower there. But, you can as well at 401 S Wacker....showpiece tower potential certainly there as well. And, you have some proximity to the OPO area. 130 Franklin is just a very good traditional office site that Tishman Speyer should have been able to successfully develop with an awesome tower ages ago (again I expect the tech bros to shift back to this general area....cool/uncool/cool/uncool). Kind of a schtick.

gebs asks the right question - will Chase be behind the curve here - and finish a 725 randolph project to usher in W Loop's accelerated 'over the hill' phase? Or can they jump in front of it, gain an edge and show a little vision, as opposed to being toward the end of a huge, classic, extended property market stampede (wonderful example of herd behavior industry is renowned for).

They did decide to put their new NY hq in a super-traditional office area in Midtown East, that may or may not be a clue.

Hmmm....

But, as for 725, if this is really Related's new plan to shift to mainly office, it very well may not work out at all for them - and I, for one, hope it doesn't. Consider that trophy office developments can be heavily controlled by a small number of local (or those with substantial local presence and experience) players in many cities, and Chicago is not an exception. Exhibit A (and this isn't of course necessarily the only factor in this example!) from above in Tishman Speyer's 130 inaction. Here, you have Riverside, Hines (John Buck, but moreso prior to several of their folks forming Riverside), and then......the occasional additional local player jumping in - a Mesirow, a Pritzker. Just to say that if Related has decided to go this route, they could get lucky with an anchor.......or they may very well not, and decide to switch back to apartments (or who knows - even condos and/or hotel).....in 10 or 15 years.