Background

  • Colliers International was engaged as exclusive agent in the sale of the property in the spring of 2012.

  • 407 South Dearborn is a 17-story, 157,406-square-foot office building in the heart of Chicago's Loop that was declared a Chicago historic landmark in 1976.

Approach

  • A tremendous location in the hear of the University District and adjacent to transit, over 65,500 students attend college in Chicago's Loop area.

  • Current occupancy of the competitive set of properties is between 97 and 100 percent occupancy with rates rising.

  • The team widely marketed the property for redevelopment to local and regional real estate investors/developers pushing the properties prime Chicago Loop location and immediate proximity to area universities.

Results

  • Plans call for redevelopment of this landmark office building into student housing and retail. The estimated construction period is 15 months and delivery by the 2015/16 school year. When finished, the property will feature 193,000 square feet, approximately 490-bed student units and 12,500 square feet of retail/restaurants.

  • A PUD and zoning variance were necessary for the redevelopment of the property and completed with the City of Chicago. The Colliers team worked with both buyer and seller throughout the entire term of the zoning process, totaling 24 months.

  • In March 2014 the building was sold for $13,300,000.