Housing Choice Partners of Illinois – 228 S. Wabash Ave.
Housing Choice Partners of Illinois desired to either renew its lease, while expanding into contiguous space, or relocate to another building in the Central Business District. However, especially because of the need to expand the size of its space, economics were more important than ever. That significantly limited the universe of suitable alternative properties and spaces.
MAP Real Estate, which had been referred to HCP years before and had already handled two previous lease negotiations for the organization, was asked to handle the current project. The alternatives for the next lease ranged from renewing and expanding in-place to relocating to another building. Multiple sublease and direct-lease alternatives were evaluated within the Central Business District target area, resulting in a shortlist of qualified alternative spaces and buildings.
It should be noted that continuous effort was made to negotiate with the incumbent landlord, because remaining in-place seemed the most likely path to achieving the least expensive transaction. That building was then and had been in receivership since years before the pandemic. Unfortunately, the receiver conducted negotiations in a way that could only be interpreted as irrational. As is typical, MAP conducted simultaneous negotiations with multiple alternatives, thereby maximizing HCP’s negotiating leverage, while maintaining a strong defensive position.
Housing Choice Partners relocated to a full floor at 228 S. Wabash, very close to affordable parking and the El. The remarkably favorable lease terms reflected the importance to the building owner of securing this transaction. Because this transaction was negotiated during the Covid pandemic, the lease terms also included a delayed commencement with the ability to use the space, rent free, until mid 2021.
HCP was able to vacate its old premises, placing its office furniture and equipment into storage at the new building, free of charge, until the new space was ready for move-in. There was as small a security deposit as is market, and no personal liability to the board of directors. The economics of the ten year lease captured the downturn in the office market rental rates resulting from the pandemic.
We continue to use MAP Real Estate because of their expertise and service. And they created IIC!
Andrea Juracek, E.D. / Housing Choice Partners of IL
Housing Choice Partners of Illinois has received $7,664 from Investing In Communities®.