565 W Randolph St Chicago, IL 60661

Located in Chicago's West Loop, 565 W. Randolph St is a 59,981 square foot Class C office building constructed in 1872. The building features a passenger elevator and a freight elevator. The property is currently 98% occupied with nine tenants. Ground-floor tenants Proxi and Sepia, two Michelin-starred dining establishments, have recently renewed their leases for another five years with additional renewal options. The property offers an office-to-residential conversion opportunity, allowing investors to capitalize on the increasing demand for multifamily units in the West Loop. 43,624 square feet (72.8% of the building) can become available by the end of December 2024. An additional 1,642 square feet (2.7% of the building) will become available between March and November 2026 as leases expire. The final 5,550 square feet (9.2% of the building) will become available between January and April 2029 upon lease expirations. This allows for a phased redevelopment strategy, maximizing cash flow while taking advantage of conversion opportunities as leases roll over. The property's location offers proximity to transportation, shopping, dining, and green spaces. 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.