By Ryan Ori
Costar News
June 2024
A Chicago law firm is adding office space and extending its stay, providing a relatively rare expansion to a 50-story tower that is being sold by its lender.
Salvi, Schostok & Pritchard has added 8,158 square feet on the 35th floor of the tower at 161 N. Clark St. in the city's Loop business district, while extending its term on 18,026 square feet of existing space on the 47th floor, the firm and its brokers told Costar News. The lease for all 26,184 square feet now runs through 2036.
161 NORTH CLARK
The lease stands out in the era of remote and hybrid work that has led many companies to cut corporate space, bringing challenges to Chicago and other big office markets.
It adds to recent signs of hope for the Loop, including a major redevelopment of the glassy, formerly state-owned James R. Thompson Center across the street that Google plans to buy and occupy with thousands of workers. JPMorgan Chase also recently announced plans to renovate its 60-story namesake tower in the Loop rather than continuing to explore potential new space elsewhere in the city.
Google's project recently was cited by real estate technology firm Lessen as a key factor in signing a large lease in a nearby building at 203 N. LaSalle St., and the law firm said it was a consideration in deciding to stay at 161 N. Clark St.
"Our first move was always to expand in our building," Managing Partner Patrick Salvi II said. "Being right next to the courthouse is essential. It doesn't hurt that right across the street is Google's project, which is very exciting for the area."
The law firm's expansion comes a few months after the property's primary lender, France's Societe Generale, took ownership.
Costar News first reported in February that Chicago-based Farpoint Development was working on a deal to buy the tower. That came after Societe Generale late last year filed a foreclosure suit against the tower's longtime owner - South Korea's postal system, advised by CBRE Investment Management - over a $230 million loan on the property that had matured.
The Paris-based bank formally took ownership of 161 N. Clark in March, according to Cook County property records, with a court's judgment of consent foreclosure.
Farpoint is still in talks to buy the tower, now joined by another Chicago firm, Golub & Co., according to people familiar with the deal.
Societe Generale did not respond to a request for comment from Costar News. Farpoint and Golub declined to comment.
The Clark Street tower was completed in 1992.
““The building made us a great offer, a concession-heavy deal,””
"The building made us a great offer, a concession-heavy deal," said one of the brokers who represented the law firm in the deal, David Knight.
"With Google building out the Thompson Center and the draw we're all hoping that will have, it made the commitment easier," added Knight, managing principal at Advocate Commercial Real Estate Advisors. "There has been trepidation in recent years about the central Loop, and I've seen that subsiding a bit. There's a little momentum now."
Salvi, Schostok & Pritchard has 19 lawyers, with three more about to join the firm, Salvi said. Expectations for continued growth led to the new deal at 161 N. Clark, which includes options for further expansion on the 35th floor, he said.
The personal injury firm also has an office in suburban Waukegan, Illinois, where it was founded in 1982. The firm added a downtown office in 1999.
While the firm allows employees to work from home as needed, the firm has a hands-on, in-person work culture, Salvi said.
““We’re not going to be remote with an eye on the bottom line, which can be pennywise and pound foolish.” ”
"We like being together," Salvi said. "We're not going to be remote with an eye on the bottom line, which can be pennywise and pound foolish."
For the Record
The tenant was represented by brokers David Knight, Craig Braham and Michael Webber of Advocate Commercial Real Estate Advisors. The landlord was represented by Telos Group brokers Matt Whipple and Jack O'Brien.