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lenstar and Wayzata Investment Partners have recapitalized Chicago's Presidents Plaza office complex for $60 million. The new owners plan to invest $16 million in upgrades, including open-ceiling suites, high-tech conference rooms, and a golf simulator. The 831,000-square-foot complex at 8600 and 8700 West Bryn Mawr Avenue is about 40% vacant.

    Amenities and modern buildouts are crucial for attracting top talent, according to Michael Klein, Glenstar's co-founder and managing principal. With no debt on the property, the owners can be creative with lease negotiations and offer more generous terms to tenants. The sale price of $62 million per square foot is a significant drop from the $177 per square foot paid by TPG Angelo Gordon in 2018.

    The discounted sale highlights the shifting real estate values affecting Chicago's commercial market. Other nearby office complexes, such as One O'Hare Centre and Riverway, have also faced challenges, including foreclosure and distressed sales. Debt-free office buildings can give landlords an advantage in a market with high levels of distress, allowing them to offer more flexible lease terms and concessions to tenants.