The trouble that has afflicted businesses and property owners along La Salle Street has hit the venerable symbol of Chicago’s historic financial corridor.
Owners of the Chicago Board of Trade Building, 141 W. Jackson Blvd., have surrendered its deed to their lender, New York investment firm Apollo Global Management, Cook County property records show.
In turn, Apollo has hired a Chicago-based developer, R2, to plot next steps for the landmark building. Locally, R2 is involved in a range of projects, including what it calls the “Salt Shed,” a conversion of an old Morton Salt warehouse into a music and dining venue.
The move comes as the city, concerned about vacant space and the future of outmoded office buildings around La Salle Street, has rolled out an incentive program to help owners modernize. A main goal of the “La Salle Street Reimagined” program is to encourage owners to change office buildings to residential use.
A source familiar with the Board of Trade Building said it is about 65% occupied. Built for financial traders, the building has had an identity crisis because its core industry has shifted to electronic markets and no longer requires huge trading floors.
The pandemic added to the building’s woes by keeping many office workers home and causing companies to rethink how much space they need to rent.
A partnership of Glenstar Properties and Oaktree Capital Management surrendered control of the building rather than go through foreclosure. Records show the partnership had a $198 million mortgage on the property.
Glenstar and a prior partner bought the building in 2012 for $151.5 million. Glenstar examined other uses for the property, but a source said its unique features made that difficult. The firm also put the property up for sale a few years ago but couldn’t strike a deal.
The Art Deco design from 1930 includes a slender tower that rises 44 stories, but most office space is on larger floors at lower levels.
R2 executives declined to discuss the assignment and Apollo did not reply to a request for comment.
Among the building’s biggest tenants is CME Group, owner of the Chicago Board of Trade and the Chicago Mercantile Exchange. It has about 150,000 square feet there but is said to be interested in offering some for sublease.
The building gained a new tenant last year in a throwback fashion, when Cboe Global Markets brought a smaller trading floor back to the building, taking space for some of its options contracts.
Cboe moved from 400 S. La Salle St., where an investment group has advised the city it is considering converting space into an esports venue with student housing.
