Office N Illinois

Chicago's Citadel Center signs new leases, including renewal for namesake

Hedge fund investment firm Citadel signed a new, long-term lease to maintain their global headquarters at Citadel Center, 131 S. Dearborn Street in Chicago’s Loop. Additionally, tech firm Sprout Social expanded by 64,000 square feet on one of the buildings “mega” floors.

The building last year welcomed a relocation from beer, wine, and spirits manufacturer Constellation Brands into 132,000 square feet on a 15-year lease. Citadel Center is now 90 percent leased with notable tenants including JPMorgan, Holland & Knight and Perkins Coie.

A partnership between Angelo, Gordon & Co., a $28 billion alternative investment firm focused on credit and real estate investing, international real estate firm Hines and Dearborn Capital Group acquired the property in 2016 and subsequently executed a recapitalization that extended debt maturities and shored up finances. Designed by Spanish architect Ricardo Bofill, the 37-story, 1.5 million-square-foot office tower was completed in 2003.

The current ownership and leasing team is in the process of executing an extensive capital improvement plan in excess of $100 million. They hope that access to transit, large open floor plates and a suite of amenities will position the building to attract companies vying for an urban-based and millennial workforce.

“The new amenities are highly prized by Chicago’s Class A tenants and Citadel Center at 131 South Dearborn will be the only trophy office tower with a private landscaped rooftop park,” said Hines senior managing director Tom D’Arcy. “The new, on-site amenity package will rival new construction and will support future leasing activity.”

Tenant amenities at the Citadel Center include access to a 10,000-square-foot fitness center, building lounge and a rooftop deck featuring a bar and fire pits. Building renovations, expected to be complete by the end of the year, will include a complete lobby renovation with destination dispatch elevators, security enhancements and a new, 180-seat conference center.