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nvestors are swooping in on Chicago's Wacker Drive, snapping up distressed office properties at significantly reduced prices. Glenstar and Minnesota investor Patrick Halloran are in talks to acquire the 41-story tower at 200 South Wacker Drive at a deep discount, while 601W Companies is planning to buy the 303 East Wacker Drive tower for a fraction of its previous value.

    These deals are part of a larger trend where office buildings across Chicago and other major cities are being sold at a fraction of their pre-pandemic valuations. The shift towards remote work has led to declining occupancy rates, leaving some properties struggling to stay afloat. Glenstar's proposed acquisition involves securing a $151 million loan from Bank of China, with the venture taking control through a deed in lieu of foreclosure.

    The South Wacker tower, once a prime office destination, has seen its occupancy rate plummet due to tenant departures and rising vacancies. Despite previous renovations worth $8.5 million, Manulife Financial's efforts to sell the property failed, leading to foreclosure action in October 2023. Glenstar and Halloran hope to revitalize the asset by capitalizing on its prime riverfront location.

    Similarly, 601W Companies is under contract to acquire the 944,000-square-foot East Wacker tower for $63 million, about 35% of what Beacon Capital Partners paid for it in 2018. The sale price works out to around $67 per square foot. This deal comes as Beacon faces a $372 million foreclosure lawsuit over its ownership of another building, highlighting the challenges faced by office landlords in Chicago's downtown market.