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Florida-based investment firm, Triple Double Real Estate, is in advanced talks to acquire the 16-story office building at 1 North State Street for $13 million, or about $23 per square foot. The sale would mark a significant decline in value from when Shorenstein Properties bought it in 2016 for $80 million, or around $142 per square foot. The property spans 560,700 square feet and is currently just 41 percent leased, down from 80 percent before the pandemic.
The potential sale would be another sign of Chicago's office market struggles, with soaring vacancy rates and waning demand affecting downtown buildings. However, Triple Double has a track record of revitalizing undervalued properties through major renovations and aggressive leasing strategies. The firm's CEO, Avi Greenbaum, has successfully overhauled several properties in the past.
The State Street office tower has already undergone significant upgrades, including a rooftop deck, fitness center, and climbing wall, but these efforts were not enough to overcome remote-work trends. The deal is being closely watched as a potential boost for State Street, an area hit hard by retail vacancies and declining office demand.
