Nightingale Snaps Up Chicago Office Tower for $130M

200 W. Jackson Blvd.

Nightingale Properties has acquired 200 W. Jackson, a LEED Silver Certified Class A office tower in Chicago’s CBD. A joint venture between Angelo, Gordon & Co. and White Oak Realty sold the 480,000-square-foot asset. The Nielsen-anchored boutique office property traded for $130 million, according to market sources.

To fund the acquisition, Nightingale selected CrowdStreet to raise $25 million from its investors. The oversubscribed investment marked the largest equity raise for an office property for the online crowdfunding vehicle.

Additional funding included an $86 million CMBS loan originated by Citibank along with a $17 million mezzanine mortgage provided by Kawa Capital Management.

Located in Chicago’s popular West Loop submarket, the building is adjacent to Willis Tower and easily accessible by train. The CTA’s Quincy station is directly adjacent to the property.

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A strong tenant roster

The multi-tenant office tower includes 7,800 square feet of ground-floor retail space. At the time of the sale, 200 W. Jackson was 83 percent occupied, with a long weighted average lease term of 9.5 years. Approximately 80,000 square feet were available for lease.

Among others, the tenant base includes Great Point Capital, FGM Architects and Chicago Electrical Co., CommercialEdge data shows. In 2017, the anchor tenant, Nielsen, signed a 215,000-square-foot lease, tripling the space occupied in the building, according to Crain’s Chicago Business.

Renovations planned

200 W. Jackson Blvd.

The 29-story office property built in 1971 underwent a complete renovation in 2005, followed by further upgrades in 2016, the same data provider shows. Nightingale Properties also plans to invest in capital improvements at the tower.

Since 2016, the current sellers invested $50 million to renovate the property, with upgrades including new curtain walls, a redesigned lobby, along with an enhanced amenity space on the 28th floor, designed by Wright Heerema Architects. Amenities include a lounge equipped with Wi-Fi, conference rooms, an indoor/outdoor terrace dubbed the Notch, a coffee bar, a fitness center, locker rooms and bike storage.

The Chicago CBD office market closed 2021 on a high note, after recording its first quarter of positive absorption since 2020, according to the latest JLL office report.

Will Hutton, director of acquisitions & capital markets at Nightingale Properties, said in prepared remarks that the company is bullish on the metro’s office market as tenants increasingly look for high-quality office product in the post-COVID-19 environment.