Chicago Loop Office Tower at 1 South Dearborn Hits Market After Sidley Austin Exit

JLL has been hired to market 1 South Dearborn Street for sale, with ING Capital directing the offering, as anchor tenant Sidley Austin prepares to vacate the 827,000-square-foot Chicago office tower. ING provided a $235 million loan to a Starwood Capital Group and Vanderbilt Office Properties joint venture that bought the property for $360 million in 2018. Sidley Austin, which occupies 544,000 square feet through a lease expiring in winter 2030, has signaled plans to move to a Related Midwest project under construction in the Fulton Market district. Its exit would cut the building's occupancy by more than half. The firm has not yet signed a lease at the new site, where Related Midwest is still seeking tenants and construction financing. The offering reflects continued distress in Chicago's downtown office market, where hybrid work schedules and elevated interest rates have depressed valuations. The building is expected to sell for less than its outstanding debt balance.