$14,995,000

Prime Investment Opportunity in Chicago’s West Loop

565 W. Randolph St presents a rare opportunity for investors to acquire a highly desirable asset in Chicago’s thriving West Loop—a neighborhood known for its dynamic commercial and residential growth.

This 59,981 SF Class C office building, constructed in 1872, seamlessly blends historical charm with modern functionality. It features both a passenger elevator and a freight elevator. With a purchase price of $14,995,000 ($250 per SF), the property provides immediate stable cash flow while offering significant value-add potential through a strategic conversion plan.

Strong Income Stability & Established Tenants

Currently 98% occupied, the building houses nine tenants, including Michelin-starred dining destinations Proxi and Sepia. These ground-floor anchor tenants have renewed their leases for another five years, with additional renewal options, ensuring strong retail income stability for investors.

Key Conversion Opportunity: Office to Multifamily Apartments

This asset presents an exceptional opportunity for an office-to-residential conversion, allowing investors to capitalize on the growing demand for multifamily units in the West Loop.

The property offers a phased approach to conversion:

• 43,624 SF (72.8% of the building) will become available by December 2024, allowing for an immediate large-scale apartment conversion.
• An additional 1,642 SF (2.7% of the building) will become available between March and November 2026, offering further flexibility for phased redevelopment.
• The final 5,550 SF (9.2% of the building) will become available between January and April 2029, enabling investors to generate income from office leases while gradually converting spaces to residential use.

Strategic Investment Potential

This property provides a phased redevelopment strategy, allowing investors to maximize cash flow while leveraging conversion opportunities as leases expire. Its prime location ensures proximity to top-tier transportation, shopping, dining, and green spaces, making it highly attractive to prospective residential tenants.

By converting the office floors to apartments, investors can:

• Tap into the strong rental market in the West Loop.
• Retain long-term income from established Michelin-starred retail tenants.
• Enhance rental rates and attract premium tenants through strategic upgrades.
• Significantly increase property value with a well-executed conversion plan.

The unique combination of historic architecture, Michelin-starred retail tenants, and redevelopment flexibility makes 565 W. Randolph St a standout investment in one of Chicago’s most sought-after neighborhoods.