B
lue Star Properties is selling its 10-story, 293,000-square-foot office building at 328 South Jefferson Street in Chicago's West Loop due to pressure from its lender, an affiliate of Wells Fargo. The property has been owned by Blue Star since 2007 and features a $24 million mortgage held by the bank.

    Cushman & Wakefield is marketing the property without a formal asking price, suggesting it may be a test of the market under duress. With only 61% leased, the building exemplifies Chicago's post-pandemic office malaise, which has left landlords struggling to stay afloat.

    Meanwhile, Blue Star is also eyeing another downtown office building just a few blocks away. The firm is close to acquiring the 26-story 2 North Riverside Plaza from the estate of late billionaire Sam Zell at a discounted price. This move would be a classic example of bottom-feeding in a depressed market, with plans for a major renovation under Blue Star's ownership.

    The building, only 54% leased, presents an opportunity for Blue Star to seize on a struggling asset and turn it around. The parallel moves reflect the adaptability of developers like Craig Golden, who are navigating a broken office market by cutting losses in some cases and seizing opportunities in others.