Historic Chicago Loop tower’s price nose dives, listed for $11M after $64M purchase in 2019

A historic office tower in Chicago’s Loop is being marketed for about $11 million, nearly seven years after its owner paid $64 million for the property, according to The Real Deal. The sale reflects the steep decline in downtown office values and the growing interest in office-to-residential redevelopment.

CBRE is seeking a buyer for the 22-story building at 55 E. Jackson Blvd., a nearly vacant property that spans about 452,000 square feet, The Real Deal confirmed. The building has only two ground-floor retail tenants, Starbucks and Potbelly, according to the sale materials and reporting by Crain’s Chicago Business.

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From foreclosure fight to court-appointed receiver

Per The Real Deal, New York-based Ready Capital filed a $62 million foreclosure lawsuit in 2024 against an affiliate of Arlington, Virginia-based Firenze Group. The lender later dismissed its own case and declined to take control of the building, a move that underscored the difficulty of maintaining empty office properties.

After the lender abandoned the foreclosure action, Chicago officials sued over alleged building code violations. A Cook County judge then appointed CNR Advisors as receiver to maintain the property. CNR hired CBRE brokers David Knapp and Maurycy Filecki to market the building, the publications noted.

Expected bids are near $11 million, or roughly $25 per square foot, Crain’s reported. That would be a sharp drop from the $64 million Firenze paid in 2019 for the building’s leasehold interest. Marc Realty retained ownership of the land and collected payments under the ground lease, the report added.

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A landmark with several possible futures

The building was about 95% leased before the pandemic changed office demand. DePaul University, its largest tenant, left in 2022 after consolidating its offices elsewhere, The Real Deal said. Firenze later defaulted on both its mortgage and ground lease.

CBRE is presenting 55 E. Jackson as a “blank canvas” that could become apartments, a hotel or a renovated office building. According to Crain’s, the firm also highlighted the potential use of Chicago’s Class L property-tax incentive, which can reduce taxes for 12 years after a major renovation of a historic landmark.

Chicago designated the building a landmark in 2012 because of its geometric exterior and column-free interiors, Crain’s said. The property opened in 1962 as the headquarters of Continental-National Insurance Group, a predecessor of CNA Financial.