Assignment 1 – Expansion
In 2000, after many years of representing the same entrepreneurial and institutional clients, Goldberg Kohn (GK) retained HDREP to negotiate an expansion of their existing premises at 55 East Monroe Street. GK was in need of additional “back office” space for firm-wide functions and it was GK’s desire to keep the firm-wide support functions at the existing building and contiguous to the existing GK premises.
After extensive evaluation of GK’s alternatives both within the building, contiguous and non-contiguous, and several alternatives outside of the building, HDREP was able to secure an expansion space contiguous to GK’s premises at a below market rental rate. HDREP successfully convinced Tishman Speyer Properties, the Landlord at the time, that GK was considering moving their firm-wide operations outside of the building in order to reduce rent expenses and increase attorney space. Fearing GK would eventually relocate out of the building in its entirety, the Landlord finally agreed to an aggressive expansion transaction.
Assignment 2 – Relocation
In 2005, GK retained HDREP to provide consulting and brokerage services on a potential relocation of its offices. The new owners of 55 East Monroe building were seeking to capitalize on the ‘condo boom’ in Chicago by converting the upper floors in the building from office space to residential condominium units. Unfortunately for the Landlord, GK had an existing lease obligation through December 31, 2008 on two of the floors the Landlord wanted to convert to condominiums. The Landlord needed GK to relocate from the conversion floors by January 1, 2007 in order to accommodate their development plans for the building.
After an extensive one year negotiation with the Landlord, HDREP secured an extremely aggressive lease transaction for GK’s new 92,000 square foot headquarters office. The transaction included a below market rental rate, significant tenant improvement allowance, and considerable Landlord base building package which allowed GK to relocate to the 32nd and 33rd floors. GK was also able to re-use an existing inter-floor stairwell which significantly reduced their capital expenditure on the office space.
Assignment 3 – Sublease/Disposition
In mid-2009, HDREP was retained to sublease/dispose of approximately 12,000 – 15,000 square feet. Due to the continued migration of companies to the West Loop/River North markets, the vacancy rate in the East Loop has consistently been the highest in the CBD over the past several years and made subletting a challenge.
Utilizing GK’s client and vendor relationships, HDREP successfully procured two separate subtenants that collectively sublet approximately 17,000 square feet at a higher than expected recovery rate of approximately 80%, including all out-of-pocket costs (including demising, commissions, and free rent). Both transactions were performed with HDREP as the listing broker, thereby saving GK commissions.