A nearly empty Chicago office tower is poised to trade at a fraction of its pre-pandemic value, underscoring the depth of distress in the city’s commercial real estate market as remote work keeps vacancy elevated.
Prime Group, led by developer Mike Reschke, has struck a deal to buy the 40-story tower at 55 West Monroe Street for roughly $25 million, according to CoStar. Seller Manulife paid $243 million for the 815,000-square-foot building in 2014. The property is now more than 80 percent vacant.
Separately, a joint venture bought 175 West Jackson Boulevard for $41 million in early 2026, roughly 87 percent below Brookfield Asset Management’s $306 million purchase price in 2018. That 22-story building had about 53 percent vacancy when it sold.
Chicago’s office vacancy rate reached about 27 percent in the fourth quarter of 2025, among the highest nationally. Opportunistic buyers including Menashe Properties have acquired multiple Loop towers at discounts of 70 percent or more from peak valuations, often planning residential conversions.
Brookfield’s lender filed foreclosure on a roughly $280 million loan on 175 West Jackson in 2022. The buyer joint venture reportedly financed the purchase partly with a $58.5 million loan from Northwind Group. Cushman and Wakefield data show national office values recovering slowly while Chicago lags. Menashe Properties recently contracted to buy 180 North LaSalle Street for about $55 million, roughly 70 percent below its 2016 price.
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Sources:
https://dailycuratednews.substack.com/p/news-headlines-may-22-2026