MAP Real ESTATE
Client Success Stories
Lawyers Trust Fund of Illinois- 65 E. Wacker
New Lease and New Funding to Support Mission
Challenge
Lawyers Trust Fund Of Illinois wanted to relocate to a building whose image was more resonant with its charitable mission than was its current address at 180 N. Stetson, which is not generally associated with the lower end of the price range. The organization had for more than 25 years been located in the East Loop and it’s executive director preferred, if possible, to remain in that general part of the central business district. This somewhat limited the universe of alternatives. However, because the East Loop has a significant number of properties that are in the bottom half of the price spectrum, the main challenge was to find a property that offered both an image of greater frugality, excellent space, good management, and other common features of higher caliber properties. Lawyers Trust Fund Of Illinois wanted to relocate to a building whose image was more resonant with its charitable mission than was its current address at 180 N. Stetson, which is not generally associated with the lower end of the price range. The organization had for more than 25 years been located in the East Loop and it’s executive director preferred, if possible, to remain in that general part of the central business district. This somewhat limited the universe of alternatives. However, because the East Loop has a significant number of properties that are in the bottom half of the price spectrum, the main challenge was to find a property that offered both an image of greater frugality, excellent space, good management, and other common features of higher caliber properties.
Action
MAP conducted market research to identify the best alternatives for direct lease because LTF desired a lease term of 12.5 years. The desired length of lease meant that subleasing would not provide a likely solution. Suitable buildings were limited to class B and the best class C properties, because our client did not want a higher caliber of building to conflict with its social mission. MAP developed multiple alternatives to the fullest level of detail, enabling LTF to have the strongest negotiating leverage and a strong defensive position.
Result
LTF was able to move to 65 E. Wacker Place, a building only three blocks from its previous address. The new space was built to its custom specifications at the landlord’s sole expense. The new lease includes an option to renew for an additional 2.5 years, at the end of the initial 10 year term, at economics that simply continue those of the first ten years. The rental rate for the new space is $12.39 per square foot less than the rate proposed by its former landlord for a renewal, thus saving LTF $44,482 per year. The concession package also includes over $110,000 of gross free rent. The new building, which has a “white tablecloth” restaurant, exercise and conference facilities, aligns well with LTF’s philanthropic mission and was strongly endorsed by its board of directors.
Testimonial
Michael has been our go-to commercial real estate professional for more than 25 years, and has done an excellent job representing us whenever we’ve needed new office space or to negotiate a renewal. He is great to work with and has earned our appreciation, as well as our trust.
Mark Marquardt / E.D. Lawyers Trust Fund of Illinois
Investing In Communities funding from this lease: $4,505
Total Investing In Communities funding: $15,881
