Local investor expands downtown office bet with deal for distressed Loop tower

May 6, 2026 - 00:47

A local investor is making a bold move in Chicago's struggling downtown office market, striking a deal to acquire a distressed 23-story tower in the Loop. The building sits just one block away from where Google plans to establish its future headquarters, a sign that some buyers see opportunity amid the ongoing downturn.

The pending sale adds to a growing list of downtown office properties trading at historic discounts. As remote work continues to reshape demand, many landlords have struggled to keep buildings occupied and loans current. This particular tower had fallen into distress, opening the door for investors willing to bet on a recovery.

The buyer already owns several other office properties in the area and appears to be consolidating a position in the central business district. Industry observers note that while the overall market remains under pressure, well-located buildings near major tenants like Google could see renewed interest as companies eventually bring workers back.

Financial terms of the deal were not disclosed, but similar transactions in recent months have seen prices fall 50 percent or more below pre-pandemic values. The sale is expected to close in the coming weeks, pending standard approvals. For now, the deal signals that at least some investors see the bottom approaching in Chicago's office market.