CHICAGO | 311 S. Wacker Drive | 65 FLOORS | 961 FT | 1990

[NYguy]

https://www.costar.com/article/173154426...ice-sale-lead-to-worlds-tallest-teardown

Will this Chicago office sale lead to world’s tallest teardown?
Hines explores demolishing 65-story tower that the firm’s development partners agreed to buy





By Ryan Ori
CoStar News
January 12, 2025

Chicago's real estate community is abuzz in recent days after word emerged that one of the city's tallest skyscrapers is set to sell for about $70 million, a steep discount from the last time it changed hands, although the object of their chatter is not primarily the sale price.

More tantalizing is the long-shot prospect that the sale of the 65-story office building could lead to the biggest voluntary demolition in world history, erasing a prominent part of the skyline.

One scenario for 311 S. Wacker would be working with Houston-based Hines to tear down the tower.

If it were to come to that, demolition crews would eliminate a 35-year-old building that has underperformed in the Chicago leasing market while creating a full-block parcel that eventually could include multiple new skyscrapers with well over 4 million square feet of space combined.

[Busy Bee]

We seem to be witnessing insane things on a daily basis now so I'm not sure this is all that unbelievable.

[JManc]

I remember when this was built and to think they are seriously considering tearing it down is fucking bonkers but commercial real-estate has been in a free fall since Covid.

[Zapatan]

Originally Posted by JManc

I remember when this was built and to think they are seriously considering tearing it down is fucking bonkers but commercial real-estate has been in a free fall since Covid.

It's a relatively young building too, supposedly the octagonal floor plates are very inefficient but tearing it down seems way too extreme and not even worth it financially unless something much better were built in its place.

4MSF, especially with today's ceiling heights could yield something decent even if spread out over a couple of buildings. Not getting my hopes up though.

I may be in the minority but I really hope they don't end up tearing it down, I actually like this building.

[Amanita]

^Me too, I am such a KPF fangirl!

[ardecila]

Fun fact I like to mention, this building sits on top of the entrance to the old Van Buren streetcar tunnel under the river. When first proposed, the winter garden would have had a connection down to the tunnel so people could walk to Union Station without going outside.

I don't know for sure, but I'm guessing that project was quietly killed after the Loop flood in 1992, people were understandably hesitant to go underground and especially below the river. But the tunnel is still there, entombed underground.

[DCReid]

I highly doubt that they would tear this building down in the current Chicago market real estate cycle. I don't think this part of Chicago is booming with demand and I don't think there is a financially strong company, such as a JPMC, looking for a huge chunk of office space in Chicago to consider a tear down. JPMC did tear down a sizeable building in NYC to put up its new HQs, so it could conceivably happen.

I think this building is polarizing because it's so close to Willis, obscuring its view, and also maybe because it is so oddly different from Willis. It's hard to believe that it's nearly 1000 feet since Willis is so dominant.

[yaletown_fella]

It was originally supposed to be a triplet, just like Brookfield Place in Toronto.



Its (100 foot shorter) cousin in Toronto.



Even though theyre both pomo office projects built in their cities central financial districts in the late 80s, theres somthing more uncanny and suburban about 311 Wacker that I cant put my thumb on. Almost as if it was supposed to be built in Midtown Atlanta or by Galleria in Houston instead of Chicago.

Current (incomplete)




It could be the surface lot adjacent to it that detracts from its appeal.

[Zapatan]

Kinda glad the triplet thing didn't happen, unless they were positioned differently.

One positive takeaway is that hopefully that parking lot would disappear.


Perhaps quite ambitious but they should build a building taller than Sears that complements it well with all that square footage.

[tusken raider]

does anyone actually think that they will tear this building down and if they do what will replace it?

[Zapatan]

Originally Posted by tusken raider

does anyone actually think that they will tear this building down and if they do what will replace it?

Not sure, I hope not but if it sold for so little maybe they will. Better to renovate though given demo costs. I also consider it a landmark.

Other skyscrapers, 4MFS according to the article would go in the area.

[bobbyir]

Wacker is definitely one of those love-it-or-hate-it buildings. I’m with you, though I think it’s awesome. That crown at the top just makes it stand out in the skyline, and the way it plays off the Sears Tower (yeah, I’m still calling it that) is pretty cool.

As for the twin towers that were supposed to go up next to it, I’ve heard about them too. The plan was for two smaller buildings that would have echoed 311’s design, but they never happened—probably due to financing or market conditions at the time. That whole area could’ve looked really different if they had been built. If you’re looking for more details, some old Chicago architecture forums might have more info buried somewhere.

[Zapatan]

I can't read the whole thing as it's behind paywall but...

New York firm buys distressed Wacker Drive tower at massive discount

A New York real estate investor known for buying distressed malls has purchased one of Chicago's tallest skyscrapers for about 85% less than it traded for more than a decade ago, one of the biggest losses of value ever for a downtown office building.

https://www.chicagobusiness.com/commerci...-firm-buys-311-s-wacker-massive-discount

[DCReid]

I wonder if they would consider a residential conversion. I read that residential growth in the Loop has been quite strong.

[twister244]

Originally Posted by DCReid

I wonder if they would consider a residential conversion. I read that residential growth in the Loop has been quite strong.

The article says they have no plans for conversion. Seems like they are going to just sit on it and see if they can lease it out to anyone looking for bargain rents and for larger investors to come along once things get more stable.

It's probably going to take a long time for the office market in downtown to really stabilize and come back. Then again - Who knows if more people start being required to come into the office. Even then though, companies don't need the kind of space they did pre-Covid.

[DCReid]

Originally Posted by twister244

The article says they have no plans for conversion. Seems like they are going to just sit on it and see if they can lease it out to anyone looking for bargain rents and for larger investors to come along once things get more stable.

It's probably going to take a long time for the office market in downtown to really stabilize and come back. Then again - Who knows if more people start being required to come into the office. Even then though, companies don't need the kind of space they did pre-Covid.

They have a 4.4 million office building, Willis, right next to them, with United Airlines occupying about 700k of Willis. I doubt they could snag Willis but maybe some of the other tenants. I bet that they will sell it in a few years as the market recovers and the likely buyer will convert it residential. Given the location near multiple large office buildings along Wacker, and not to far from Union Station and good transit, it would be a good residential location.

[twister244]

Posted about this in one of the Chicago threads a while back, but gonna post here again.

I've noticed now for several weeks that the crown lighting at 311 is off at night... Is there something going on with the tower? Conversion?

[Bonsai Tree]

Almost certainly for the bi-annual bird migration.

A number of downtown buildings turn off their lights to prevent excess bird deaths.

https://www.chicago.gov/city/en/progs/env/lights_out_chicago.html

I know 311 has done this for a number of years and it's around peak migratory season currently.

[twister244]

Originally Posted by Bonsai Tree

Almost certainly for the bi-annual bird migration.

A number of downtown buildings turn off their lights to prevent excess bird deaths.

https://www.chicago.gov/city/en/progs/env/lights_out_chicago.html

I know 311 has done this for a number of years and it's around peak migratory season currently.

Not so sure about that.......

I was sitting on my rooftop tonight enjoying the moonrise and 311 was DARK..... Not only was the crown not on like it normally is, but the top floors looked very dark. I almost couldn't make the building out.......

Is there something going on with it? Or is it just that fucking empty that the owners are like - Just shut all the lights off - Pretty sad to see actually.