565 W Randolph St
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565 W Randolph St
59,225 SF 98% Leased Office Building Chicago, IL 60661 $21,553,362 CAD ($364 CAD/SF)
Investment Highlights
- Prime West Loop Location
- High Occupancy with Michelin-Starred Anchors
- Significant Redevelopment Potential
- Phased Conversion Opportunity
Executive Summary
565 W. Randolph St offers investors a unique opportunity to acquire a prime asset in Chicago’s West Loop, a neighborhood celebrated for its dynamic blend of commercial and residential growth. This ±59,981 SF Class C office building, constructed in 1872, combines historical charm with modern functionality, featuring both a passenger elevator and a freight elevator. At $250 per SF with a purchase price of $14,995,000, this asset provides immediate stable cash flow along with significant value-add potential through a strategic conversion plan.
The property is currently 98% occupied, with nine tenants, including ground-floor anchors Proxi and Sepia—two Michelin-starred dining establishments that recently renewed their leases for another five years with additional renewal options. This established retail presence ensures strong income stability for investors.
Key Conversion Opportunity: Office to Multifamily Apartments
This asset presents a compelling opportunity for an office-to-residential conversion, allowing investors to capitalize on the increasing demand for multifamily units in the West Loop. The property offers a phased approach to conversion: 43,624 SF (72.8% of the building) can become available by the end of December 2024, providing the majority of the building for potential apartment conversion immediately after acquisition.
An additional 1,642 SF (2.7% of the building) will become available between March and November 2026 as leases expire, offering further flexibility for phased redevelopment.
The final 5,550 SF (9.2% of the building) will become available between January and April 2029 upon lease expirations, enabling investors to continue generating income from office leases while gradually converting spaces to residential use.
Strategic Investment Potential
This asset allows for a phased redevelopment strategy, maximizing cash flow while taking advantage of conversion opportunities as leases roll over.
The property's prime location offers 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, while still benefiting from the stable income of long-term retail tenants. With strategic upgrades and a phased conversion plan, investors can elevate rental rates, attract premium residential tenants, and significantly enhance the property's value. The unique combination of historical architecture, Michelin-starred retail tenants, and conversion flexibility positions 565 W. Randolph St as a standout investment in one of Chicago’s most sought-after neighborhoods.
The property is currently 98% occupied, with nine tenants, including ground-floor anchors Proxi and Sepia—two Michelin-starred dining establishments that recently renewed their leases for another five years with additional renewal options. This established retail presence ensures strong income stability for investors.
Key Conversion Opportunity: Office to Multifamily Apartments
This asset presents a compelling opportunity for an office-to-residential conversion, allowing investors to capitalize on the increasing demand for multifamily units in the West Loop. The property offers a phased approach to conversion: 43,624 SF (72.8% of the building) can become available by the end of December 2024, providing the majority of the building for potential apartment conversion immediately after acquisition.
An additional 1,642 SF (2.7% of the building) will become available between March and November 2026 as leases expire, offering further flexibility for phased redevelopment.
The final 5,550 SF (9.2% of the building) will become available between January and April 2029 upon lease expirations, enabling investors to continue generating income from office leases while gradually converting spaces to residential use.
Strategic Investment Potential
This asset allows for a phased redevelopment strategy, maximizing cash flow while taking advantage of conversion opportunities as leases roll over.
The property's prime location offers 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, while still benefiting from the stable income of long-term retail tenants. With strategic upgrades and a phased conversion plan, investors can elevate rental rates, attract premium residential tenants, and significantly enhance the property's value. The unique combination of historical architecture, Michelin-starred retail tenants, and conversion flexibility positions 565 W. Randolph St as a standout investment in one of Chicago’s most sought-after neighborhoods.
Property Facts
Sale Type
Investment
Sale Condition
Redevelopment Project
Property Type
Office
Property Subtype
Building Size
59,225 SF
Building Class
C
Year Built
1920
Price
$21,553,362 CAD
Price Per SF
$364 CAD
Percent Leased
98%
Tenancy
Multiple
Building Height
6 Stories
Typical Floor Size
9,997 SF
Slab To Slab
10’
Building FAR
5.67
Lot Size
0.24 AC
Zoning
DX-7 - Commercial
Amenities
- Bus Line
- Commuter Rail
- Signage
- Kitchen
Space Availability
- Space
- Size
- Space Use
- Condition
- Available
- 1st Floor
- 20,141 SF
- Office
- -
- 30 Days
Space | Size | Space Use | Condition | Available |
1st Floor | 20,141 SF | Office | - | 30 Days |
1st Floor
Size |
20,141 SF |
Space Use |
Office |
Condition |
- |
Available |
30 Days |
Walk Score ®
Walker's Paradise (98)
Transit Score ®
Rider's Paradise (100)
Bike Score ®
Very Bikeable (86)
PROPERTY TAXES
Parcel Number | 17-09-332-001-0000 | Improvements Assessment | $1,897,997 CAD |
Land Assessment | $285,417 CAD | Total Assessment | $2,183,414 CAD |
PROPERTY TAXES
Parcel Number
17-09-332-001-0000
Land Assessment
$285,417 CAD
Improvements Assessment
$1,897,997 CAD
Total Assessment
$2,183,414 CAD
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565 W Randolph St
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