CRE N Illinois

State Street's historic Waterman Building seeking buyer

State Street's historic Waterman Building seeking buyer,ph1

The Waterman Building, a 31,000-square-foot, seven-story building located at 127 S. State Street in Chicago, is now being marketed for sale by Essex Realty Group, Inc. Adjacent to the Palmer House Hilton Hotel and surrounded by a wide array of shopping and dining options, the 100-year-old-building is seeking $4,950,000.

“This is a fantastic opportunity for an adaptive reuse development project in the heart of the State Street corridor and the central business district of Chicago. The building has incredible character and so much potential and we believe a developer may also be able to take advantage of the Historic Tax Credit program,” said Jordan Gottlieb, principal at Essex Realty Group and one of the brokers marketing the building.

The property was built in 1919 for the Waterman Company. The high-end fountain pen manufacturer’s retail showroom was on the main level while the upper floors were used as pen assembly and stock rooms. There are currently approximately 2,560 square feet of first-floor retail space, plus additional basement and mezzanine level space that is currently vacant. While the upper floors have been vacant since the 1970s, the first-floor retail and basement space were last occupied by Beef and Brandy and Bar Below.

The San Francisco-based international hospitality company, Sonder, has signed on to lease and operate floors two through seven. Sonder has operated in Chicago since 2015 and in notable properties including Essex on the Park and The Plymouth. Essex has successfully worked with a similar short-term stay hospitality company in Chicago called Ginosi while marketing for sale 747 N. May Street in Chicago, a 22-room apartment hotel.

“We are starting to see a lot more deals with operators like Sonder and other startup hotel, extended-stay and Airbnb operators. This is a fantastic new segment of the market that will become more and more commonplace in the years to come,” said Gottlieb.