• Commercial Real Estate
  • Big Ten Network expands at Groupon HQ

    Developer Sterling Bay locked up long-term deals with the network and chocolate manufacturer Barry Callebaut at 600 W. Chicago Ave.

    Sterling Bay

    600 W. Chicago Ave.

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    79彩票注册网址After wrapping up a $20 million renovation of the historic Groupon headquarters building, developer Sterling Bay has locked up long-term deals with two of its most prominent tenants.

    79彩票注册网址Expanding by a combined 30,000 square feet at 600 W. Chicago Ave., the Big Ten Network and chocolate and cocoa manufacturer Barry Callebaut each extended their leases at the nearly 1.7 million-square-foot building. Barry Callebaut inked a new 12-year agreement through 2032, while BTN extended its lease through the late 2020s, Sterling Bay announced.

    The deals come as the developer finishes a series of capital improvements to the landmark building along the North Branch of the Chicago River, which Sterling Bay bought for $510 million almost two years ago. They also help shore up key pieces of the property's tenant roster deep into an economic growth cycle, a move many landlords are trying to make to avoid being caught with vacant space in a downturn.

    79彩票注册网址The former Montgomery Ward catalog building is now best known as Groupon's headquarters. The online-deal company is the largest tenant, with about 400,000 square feet, according to Sterling Bay. With the BTN and Barry Callebaut deals, the building is now 97 percent leased, up from 94 percent when the developer bought it.

    Sterling Bay's purchase was a big step in the firm's graduation from West Loop loft office turnaround artist to trophy building investor. Much like its previous work, it has plowed a lot of money into 600 W. Chicago hoping to retain tenants and boost the property's value.

    79彩票注册网址The developer said it spent about $13 million renovating the building's lobby and reconfiguring its outdoor plaza to make it easier for cars to pick up and drop off passengers. Another $7 million went into restoring the facade of the building, which runs along the river near the southern tip of Goose Island.

    79彩票注册网址After hearing gripes from tenants about the dining options in the building, Sterling Bay brought in Lombard-based school dining company Quest Food Management Services, which will open the Farehouse Market food hall in the building next week.

    The lobby updates especially "had a huge impact" on the willingness of BTN and Barry Callebaut to recommit to the building, said Sterling Bay Executive Vice President of Leasing Russ Cora, who negotiated the deals for Sterling Bay and is overseeing the developer's leasing efforts up the river at its planned Lincoln Yards campus.

    BTN added nearly 12,000 square feet for its offices and studio for a total of more than 58,000 square feet. Barry Callebaut expanded its footprint by about 40 percent to around 57,000 square feet.

    Aside from Groupon, the building's largest tenants include Echo Global Logistics, cancer-fighting tech company Tempus and proprietary trading firm Jump Trading.

    Savills Vice Chairmen Robert Sevim and Kelly Givens represented BTN in its lease expansion. David Findling of Cushman & Wakefield represented Barry Callebaut.

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