A Chicago-area general contractor is wrapping up renovation work at two downtown Chicago office buildings with the same owner.
Bear Construction Co. expects to complete $1.5 million in renovations at 515 N. State St. later this month, and $3.8 million at 190 S. LaSalle St. in June. Both buildings are owned by Boston-based Beacon Capital Partners, said Scott Kurinsky, executive vice president of Bear Construction, to the Chicago Business Journal.
At 515 N. State St., the company is building a 23,900-square-foot spec suite, and at 190 S. LaSalle St., it will build out 43,000 square feet for seven spec suites. According to Kurinsky, Bear will also build three additional spec suites at 190 S. LaSalle St., which Beacon Capital also owns. Additions will be a new library, renovating the lobby and work to common spaces.
“At these projects we’ll be building spec suites that are designed with a variety of tenants in mind. Owners see a lot of value in building spec suites because they allow for immediate occupancy,” said Kurinsky. “In our experience, building spec suites is a tool that ownership groups can leverage to create leasing momentum and add value to their building.”
He added that the renovations would also help the owners meet the evolving challenges within the commercial real estate market.
For example, Rolling Meadows-based Bear delivered spec suite products at three downtown buildings — Old Post Office, 24 E. Washington St. and 1 S. Wacker Drive — that Kurinsky said helped those building owners with their leasing efforts.
“This type of investment can’t be underestimated. We’ve seen buildings completely transform their position in the market with thoughtful redevelopment like the ones we’ll be creating at 190 S LaSalle and 515 N State,” he said. “The investments being made at these two properties will recreate the common spaces and add ready-to-go spec suites that will add value to the building’s owners as they work to lease their vacancies.”
The anchor tenant at 190 S. LaSalle St. is US Bank with 121,000 square feet. Dentsu International anchors 515 N. State St. with 126,000 square feet.
Chicago Business Journal