225 W. Wacker Drive in Chicago Sells for $115 Million to Prime Finance and Hines
CHICAGO — Prime Finance and Hines have acquired 225 W. Wacker Drive, a 31-story Class A office tower along the Chicago River, from Spear Street Capital for $115 million, Cushman & Wakefield announced Nov. 6.
Cushman & Wakefield (NYSE: CWK) said it advised Spear Street Capital on the sale. The firm's Equity, Debt and Structured Finance group also advised Prime Finance in sourcing acquisition financing. Cushman & Wakefield will remain an anchor tenant in the building under the new ownership and is expected to be retained to oversee property management and agency leasing on behalf of Prime Finance.
225 W. Wacker Drive Sale: Deal Details
The $115 million price equates to roughly $177 per square foot, based on the building's approximately 651,000 square feet. The property sits at the intersection of Wacker Drive and Franklin Street, where Chicago's West Loop and River North neighborhoods converge. It was built in 1989 and underwent a renovation in 2023. The building is LEED Gold certified.
Cushman & Wakefield's National Office Investment Advisory Group, consisting of Cody Hundertmark, Tom Sitz, Jeremiah Olsen and Kelsey Berry, represented Spear Street Capital. Jeff Altenau and Zach Yarnoff lead the Equity, Debt and Structured Finance group that advised Prime Finance on financing.
Sitz, Cushman & Wakefield Executive Managing Director and Co-Head of Midwest Capital Markets, said: "225 W. Wacker is one of the largest and highest quality office towers to trade hands in downtown Chicago since 2022 and represents continued proof that high-quality assets attract high-quality buyers." He added: "The building's recent transformation, amenity enhancements and leasing momentum generated significant investor interest. Prime Finance and Hines are acquiring a highly differentiated property that is well-positioned for immediate and long-term success in one of the nation's strongest and most resilient office submarkets."
Capital Improvements and Planned Upgrades
During Spear Street Capital's ownership, the property underwent capital improvements aimed at the tenant experience. These included a lobby renovation, upgraded conferencing and collaboration spaces, a hospitality-driven tenant lounge, fitness facilities and an outdoor rooftop terrace. The building has direct access to Chicago's Riverwalk and is near the city's transportation network, restaurants, hotels and entertainment destinations. Tenants include a range of corporate and professional services firms, among them Cushman & Wakefield.
The new ownership plans additional investments, including a re-envisioned lobby-level restaurant and bar intended to activate the ground floor and strengthen its connection to the riverfront.
Chicago Office Market Context
The sale comes as Chicago's central business district continues to face elevated vacancy. CBD office vacancy reached 27.2% in the third quarter of 2026, up 20 basis points from the prior quarter and 160 basis points from a year earlier. Net absorption was negative for the eleventh consecutive quarter in the second quarter, at negative 215,000 square feet.
Rents for higher-quality space have moved differently. Overall CBD asking rents rose to $46.15 per square foot in the third quarter, while Class A asking rents increased to $57.11 per square foot. In the second quarter, Class A asking rents were $54.06 per square foot, and trophy buildings averaged $57.45 per square foot, a 2.7% decline from a year earlier.
Cushman & Wakefield's Chicago research indicates that tenant demand is increasingly concentrated in buildings with stronger workplace experiences, modern amenities and convenient access, widening the gap in leasing and investment performance between higher- and lower-quality assets. Nationally, four-quarter rolling office absorption reached positive 14.3 million square feet in the second quarter of 2026, the strongest reading since 2020 and the seventh consecutive quarter of improvement.
Outlook
The transaction involves a single tower rather than a portfolio and adds a Chicago riverfront office asset to the holdings of Prime Finance and Hines. With Cushman & Wakefield continuing as anchor tenant, property manager and leasing agent, and the buyers planning further amenity investment, the property's repositioning is expected to continue under new ownership.
Sources
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