Wacker Drive Office Tower Getting $30M Makeover After Loan Modification

A 40-story office tower at 1 S. Wacker Drive will get a multimillion-dollar upgrade that includes renovating several floors of the building, according to new documents filed with the city. 

The city issued a renovation/alteration permit this week for work on the building, with a reported cost of $27.7M, permit documents show. 1 S. Wacker is owned by New York-based 601W, the developer that overhauled the Old Post Office several years ago.

Construction will include new partitions as well as mechanical, electrical and plumbing work. The work description includes interior alterations to existing offices on floors 13, 14 and 15, and partial alterations on floors 16, 17, 18, 19 and 20. Additionally, it outlines miscellaneous demolition on floors 18, 19 and 20.

Scott Becker is listed as the architect on the project with Skender Construction as the general contractor, according to city documents. 

A representative for Skender said the company preferred not to comment at this time, and 601W did not immediately respond to a Bisnow request for further information.

601W struck a deal with its lender in December 2023 to extend the maturity date on the $310M loan tied to the building by three years, Crain's Chicago Business reported. The loan was set to come due that month.

The modification bifurcated the loan, with a new portion coming from Blackstone Group that could up the loan amount to as much as $356M and help fund new leasing in the building, the outlet reported. 

The building was about 80% leased as of late last year, according to Crain's.