CHICAGO, Aug. 30, 2016 – The City of Chicago, owner of Pershing Crossing, has engaged Cushman & Wakefield to market the former military installation in the city’s historic Central Manufacturing District to potential investors and tenants.
For 65 years, Pershing Crossing functioned as the U.S. Sixth Army Headquarters and Quartermaster Depot. Today, the three-building, 1.7 million-square-foot complex is undergoing re-visioning and redevelopment into a strategic location for commercial office and data center use. Cushman & Wakefield Vice President Daniel Nack heads the United States leasing team, while Senior Director Richard Howard leads the United Kingdom team. Vice President Lexis Livengood and Director Benjamin Cleveland round out the Cushman & Wakefield marketing team.
“Based on their size, load-bearing capacities, and connectivity to nationwide communication networks, the Pershing Road buildings offer significant opportunities for modern commercial uses,” said David L. Reifman, commissioner of the Chicago Department of Planning and Development. “The City is looking forward to proposals and the buildings’ eventual sale and redevelopment for contemporary business needs.”
Constructed in 1918, Pershing Crossing offers a historic vibe with the industrial feel prized by today’s technology, creative, service, fashion, publishing and other tenants who use innovative and “cool” space to attract the best talent. At the same time, the size of its floors is ideal for financial services, legal, consumer products and other large corporate users, as well as data center, research and development and light industrial uses.
The buildings are located in an evolving area where the concept of live-work-play comes to life, presenting a unique value-add opportunity for investors. Significant residential options are within walking distance of the complex, which is adjacent to McKinley Park, a 69-acre public green space with jogging trails, an ice rink, baseball and soccer/football fields, basketball courts, a junior Olympic-size pool, gymnastics center and two gymnasiums. To the east, Chicago Indoor Sports features four multi-purpose athletic fields among other activity-related facilities. For tenants with travel requirements, the complex is conveniently located just 18 minutes from Midway Airport and one mile from Interstates 55.
“Chicago has made a name for itself as one of the most attractive global startup ecosystems in the world,” said Nack. “As part of the earliest planned industrial park in the U.S., Pershing Crossing offers some of the most unique, creative and sizable office space in the nation for Chicago’s next generation of innovation.”
Pershing Crossing encompasses three interconnected buildings, each of which boasts six floors measuring 85,000 square feet individually. Combined, the complex offers “superwide” floor plates of 260,000 square feet each. While the buildings, which each have 10 elevator shafts and three entrances, are ideal for a single user seeking an identity location in Chicago, all floors can be divided into occupancies appropriate for smaller tenants. Army standards required strong construction, so Pershing Crossing’s exterior brick and masonry walls are 12 inches thick, and its reinforced concrete floors were designed to carry a minimum floor load of 300 lbs. per square foot. Floors also have column spacing of 18 by 24 feet. The City of Chicago has budgeted $41 million towards upgrades to both Pershing Crossing and the supporting infrastructure, including the installation of dark fiber on a SONET Ring and a redeveloped streetscape with attractive new sidewalks and streetlights. ComEd has committed to providing tenants 20mW of power on day one of occupancy, and the building offers virtually unlimited capacity for addition distribution circuits at source substations.
In addition to these amenities, Pershing Crossing is located in an enterprise zone that entitles economic incentives to qualifying tenants. It was recently named to the National Register of Historic Places, which qualifies for the 20% federal rehabilitation tax credit.
“Given that taking rents for space in Chicago and this area are significantly below comparable properties in markets such as New York, London and San Francisco, Pershing Crossing is an incredible opportunity to gain success in a piece of history updated for today’s commercial tenants,” said Howard.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.