Chicago Tribune from Chicago, Illinois • 135

Chicago Tribune, Sunday, November 5. 1989 Section 7 11 Sears faces tough sell leasing Tower office space I i t- A i A 'k I 1.7 T- jr. By Stanley Ziemba Having removed the "For Sale" sign from Sears Tower, Sears, Roebuck Co. now faces a problem it had hoped to avoid finding a new anchor tenant for the world's tallest building. When Sears' Mer-chandise Group moves to Hoffman Estates in 1992, the company will have to find one or more firms to lease the 1.8 million square feet of office space in the 110-story skyscraper that the retailing division will be vacating.

Sears could have avoided the problem had it sold the building outright, leaVing a new owner stuck with the task. Sears tried to sell the Tower. In fact, a sale to Toronto-based developer Olympia York Developments Ltd. for $1.04 billion appeared imminent last summer, but fell through in the fall. Sears could find no other takers.

The firm now is said to be seeking an $850 million convertible mortgage in other words, taking its equity out of the building while retaining at least partial having offices at or near the top of a skyscraper creates the perception, if not the reality, that it is powerful and prestigious. Moreover, the floors in the lower half of the building where Sears' Merchandise Group offices currently are located are too large for most types of office users, the brokers say. "Most of the midsize to large firms in the market for new office space today fit nicely into 25,000 square feet of floor space," said Pamela Rose, managing director of the Chicago-based corporate real estate firm of Rose Associates Inc. "The floors on which the Merchandise Group are located are 50,000 square feet. "Large insurance companies, banks, engineering firms and maybe large accounting or architectural firms that need large spaces to accommodate administrative support staffs probably would work well in such a large space.

Most other office users, such as law firms, however, have need of lots of private offices with windows. Not too many people can be next to or near a window ownership. According to commercial real estate brokers here, Sears' decision to go the convertible mortgage route implies, on the surface at least, that the retailer will have its cake and be able to eat it, too. But faced with the daunting task of filling 1.8 million square feet of soon-to-be vacated space in the Tower, the retailer might find the cake to be anything but appetizing. To get some idea of the scope of Sears' problem, consider that most of the new, mega-size office buildings built downtown in recent years contain 800,000 to 1 million square feet of rentable office space.

The space being vacated in Sears Tower, in effect, is equal to two major office towers. The thought of having to find new tenants to fill such space sends shivers through even the most experienced brokers in the city's commercial real estate firms. "Can they do it?" said Goldie B. Wolfe, president of the firm, Goldie B. Wolfe Co.

and one of the city's top commercial real estate brokers. "Sure, anything is leasa ble. It's just not going to be easy." According to Wolfe and other downtown real estate brokers, Sears Tower has a lot of pluses that appeal to prospective office tenants. The building itself, because of its height, is a trophy structure. Despite its age it was completed in 1974 it remains a quality building.

Moreover, it's on Wacker Drive, the hottest high-rise commercial office strip in Chicago. But brokers also point out that approximately 15 percent of the office space along Wacker Drive currently is vacant. That figure is likely to increase by 1992 as more new buildings now under construction along the downtown strip open for business. That means there will be lots of buildings competing with Sears for new tenants, they said. More important, the brokers point out, the floors within Sears Tower to be vacated by the company's Merchandise Group are in the lower half of the building, the space within an office tower usually least attractive to image-conscious tenants.

For many firms, on a floor." Rose, Wolfe and most other commercial real estate brokers say that Sears' success in leasing the 1.8 million square feet of Tower space will require a gradual phasing out of the Merchandise Group from Sears Tower perhaps over a period of five years or so a competitive rental rate and some major remodeling. "If they vacate that space all at one time, the office market on Wacker Drive could be thrust into a state of depression," Rose said. "It would become a tenants' market and development of more new buildings along Wacker and adjacent streets would probably come to a halt for a couple of years." As for renovating Sears Tower, the lobby needs to be made more attractive and the windows, which have broken occasionally during high winds, need to be replaced with a more wind-resistant window, brokers say. As for the rent, Sears probably will have to charge $5 to $10 less than the $20- to $24-a-square-foot net rent that office space along Wacker Drive commands. The Sears Tower 3uDh is nKo) t'-jggy" -mr 'im 'm-wr "numm.irr" CJ t-JUUi roraTLvn Lfi FN It j3 toW ft I :1 i bftft, JM5 GUKt FHA CASE LISTING PRICE FHA CASE NUMBER: FHA CASE NUMBER: FHA CASE NUMBER: LISTING PRICE LISTING PRICE PROPERTY ADDRESS PROPERTY ADDRESS PROPERTY ADDRESS LISTING PRICE PROPERTY ADDRESS NUMBER BELLWOOD 427 23rd S.

60104 LBP $35,100 131 345836 203 9247 Stony Island S. 60617 LBP $19,000 131 376665 703 1021 Trumbull N. 60651 LBP $27,500 131 312010 203 7323 University S. 60619 LBP $12,000 131 490003 703 10152 Yates S. 60617 LBP $26,000 131 324608 203 131 389748 270 131 303216 203 131 314173 235 123 48th Ave.

60104 LBP $50,700 131 414396 203 FHA Insurod Financing Availablo. 102 Bellwood 60104 I.BP $49,100 131 379598 203 "I-ha insured i-inancing Available-. $36,600 $22,500 $22,500 $43,900 $44,900 FHA Insured Financing Available, Subjoct to $4 18 ropair oscrow. Uninsured prico $25,600. For copy of ropair specifications call (312) 886-9761.

CHICAGO HEIGHTS 312 Hyde Park Ave. 60104 LBP $54,000 131 527175 703 CHICAGO (continued) 10114 Bensley S. 60617 LBP $23,000 131 254625 203 9603 Bishop S. 60643 LBP $21 ,000 131 441992 548 "FHA Insured Financing Availablo. Subject to $792 repair escrow, Uninsurod price $20,300.

For copy of repair specifications call (312) 686-9761. 8050 Burnham S. 6061 7 1 31 31 9029 203 FHA Insurod Financing Availablo Subject to $825 repair oscrow Uninsured price $19,250. For copy of ropair specifications call (312) 886-9761. 8437 Burnham S.

60617 LBP $33,000 131 376754 203 FHA Insurod Financing Availablo. 4745 Byron W. 60641 LBP $77,200 131 419676 703 "FHA Insured Financing Available. Subject to $2,420 repair oscrow. Uninsured price $75,000.

For copy of repair specifications call (312) 886-9761. 10625 Champlain S. 60628 LBP $10,800 131 382413 203 160 Kathleen 60411 LBP $47,500 131 317087 203 FHA Insurod Financing Availablo. BLUE ISLAND MIDLOTHIAN 14610 Sawyer 60445 LBP MILAN 305 30th W. 61264 LBP MOLINE 2124 43rd 61265 LBP FHA Insured Financing Availablo.

NORTH CHICAGO 1900 22nd 60064 LBP 1825 Elizabeth 60064 LBP 'FHA Insurod Financing Availablo. 1612 Park Ave. 60064 LBP PARK FOREST 264 Allegheny, 60466 LBP 333 Nokomis 60466 LBP 131 369703 203 131 389869 203 2050 119th Place, W. 60406 LBP $41,000 131 541759 748 $46,900 131 310304 203 CICERO 3105 52nd Ct S. 60650 LBP $35,500 131 387548 703 COLLINSVILLE 132 Collinsville Ave.

62234 LBP $36,000 132 001342 248 DECATUR 1660 34th, N. 62526 LBP $28,000 132 068353 266 FHA Insurod Financing Availablo. 'FHA Insurod Financing Availablo, 11935 Longwood S. 60406 LBP $46,400 131 403716 703 FHA Insured Financing Availablo subject to $1 ,540 repair escrow. Uninsured price $45,000.

For copy of repair specifications call (312) 8B6-9761. BOLINGBROOK $27,500 $32,000 614 Ashbury Ln N. 60439 LBP $78,000 131 470627 748 131 407138 503 131 385473 234 131 426592 548 131 324894 203 131 409523 203 8947 Eggleston S. 60620 LBP $41 ,500 "FHA Insurod Financing Availablo. 12110 Emerald S.

60628 LBP $13,300 9338 Harper S. 60619 LBP $34,000 $61,900 121 Valley Dr. 60439 LBP $63,000 131 468916 203 3624 Western 60466 LBP $24,000 FHA Insurod Financing Availablo. 23435 B23 Western Ave, 64066 LBP $20,200 131 376157 203 131 372326 703 131 312733 203 131 514921 703 131 336654 503 $53,400 $56,800 ''Condominium. FHA Insurod Financing Availablo, Call for appointment.

312-891-2200 RIVERDALE 16 137th E. 60627 LBP $48,000 131 388024 203 ROCK ISLAND FHA Insured Financing Availablo BROADVIEW 2044 13th S. 60153 LBP FHA Insured Financing Availablo 2115 20th S. 60153 LBP "FHA Insurod Financing Availablo CAHOKIA 2324 Lorraine Dr. 62206 LBP CALUMET PARK DOLTON 14515 Kimbark, 60419 LBP FHA Insured Financing Available.

EAST ST. LOUIS 1411 53rd N. 62204 LBP 237 63rd N. 62203 LBP 769 74th N. 62203 LBP' 198 75th 62203 LBP 908 88th N.

62203 LBP 5530 Adelaide, 62204 LBP 640 Alhambra 62205 LBP ELGIN 4,500 7,500 $12,500 $11,150 $12,000 $8,000 6,750 FHA Insurod Financing Availablo. Subjoct to $1 790 repair oscrow. Uninsured price $32,400. For copy of repair specifications call (312) 886-9761. 6945 Hermitage Ave.

S. 60636 LBP $10,400 131 392763 203 11731 Indiana S. 60628 LBP $15,000 131 384693 203 855 Lawndale S. 60651 LBP 9,900 131 258410 203 9022 Mackinaw S. 60617 LBP $17,000 131 21 1695 335 FHA Insurod Financing Availablo, Subjoct to $853 repair escrow, Uninsurod prico $16,250.

For copy of ropair specifications call (312) 886-9761. 10138 Malta S. 60643 LBP $24,000 131 410022 503 FHA Insured Financing Availablo. Subjoct to $820 ropair oscrow. Uninsurod prico $23,250.

For copy of repair specifications call (312) 886-9761. 8056 Marquette S. 60617 LBP $14,500 131 199735 203 $16,200 132 001851 777 132 054711 203 132 000037 777 132 058875 303 132 077793 303 132 059482 203 132 057957 303 132 000727 348 131 367124 203 131 345383 203 12433 Honore, S. 60643 1823 7th 61201 LBP 1305 8th 61201 LBP ROCKFORD 2228 4th S. 61108 LBP FHA Insurod Financing Availablo.

3231 61103 LBP "FHA Insured Financing Availablo. 607-09 Bruce 61103 LBP $12,800 4,000 $23,500 $21,900 3,500 'FHA Insured Financina Available. Subioct to $1 .320 rcoair escrow. Uninsured 153 Dubois N. 60123 FHA Insured Financing Availablo.

131 232193 203 131 309260 203 131 414011 203 131 377468 703 131 428767 203 131 277134 203 131 236266 203 131 377582 203 131 495869 703 131 393794 503 131 408214 503 131 460098 203 131 319968 503 9235 Marquette S. 60617 LBP $18,700 7318 May S. 60621 LBP $19,000 1016 Menard N. 60651 LBP $23,900 9923 Merrill 6061 7 LBP $23,000 $52,000 131 496610 703 GLENWOOD 243 Maple 60425 LBP "FHA Insurod Financing Availablo. GRANITE CITY 2438 Cleveland, 62040 LBP 1136 Independence 61102 LBP $11,000 1 1 04 Oakley Ave.

61 1 03 LBP $1 4,750 ROUND LAKE BEACH 22900 Lake Park W. 60073 LBP $65,000 $29,000 132 000221 221 "FHA Insurod Financing Availablo. Subject to $385 ropair oscrow. Uninsurod price $22,650. For copy of ropair specifications call (312) 886-9761.

9737 Merrion S. 60617 LBP $23,000 131 471654 203 HARVEY 14546 Lexington S. 60426 LBP $21 ,700 $65,000 131 309909 203 prlco $55,000. For copy ot repair specifications call (312) 886-9761 CARPENTERSVILLE 2134 A Morningside 60110 LBP $28,900 131 285319 270 'FHA Insurod Financing Available. Subject to $2,893 repair oscrow.

Uninsured price $26,300. For copy of repair specifications call (31 2) 886-9761 CENTREVILLE 7108 Edna St. 62203 LBP 4,000 132 029934 203 CHICAGO 1452 72nd W. 60636 131 404305 203 FHA Insured Financing Available Subject to $744 repair oscrow. Uninsurod price $12,300.

For copy of repair specifications call (312) 886-9761 2603 77th E. 60649 LBP $24,000 131 471944 203 2660 77th E. 60649 LBP $14,000 131 359347 203 860 87th W. 60620 LBP 8,000 131 484461 748 1403 109th Place, W. 60643 LBP $24,300 131 496010 703 18 116th W.

60628 LBP 4,400 131 301469 203 1650 71st W. 60636 LBP 5,500 131 224926 203 938 71st W. 60621 LBP $13,300 131 390741 203 10001 Bensley S. 60617 131 321358 203 Fha Insured Financing Availablo. Subioct 1 ,273 ropalr escrow.

Uninsurod pnee $24,850. For copy of ropair specifications call (312) 886-9761 $52,900 131 449367 703 "FHA Insured Financing Available 509 Normandie Ln 60073 FHA Insured Financing Availablo. 24461 Oak 60073 LBP "FHA Insured Financing Availablo. WASHINGTON PARK 5714 Portland, 62204 LBP WAUKEGAN 2700 Varonen, 60085 LBP "FHA Insured Financing Availablo, 1 136 Mozart N. 60647 1 ,000 Vacant Lot 10445 Normal S.

60628 LBP $21,800 9043 Parnell S. 60620 LBP $34,000 7135 Peoria S. 60621 LBP $12,000 8420 Peoria S. 60620 LBP $25,000 FHA Insured Financina Availablo. $16,600 131 248770 203 8,800 131 246901 203 $23,460 131 487543 734 $6,500 132 074342 303 131 159731 303 131 381417 503 131 438931 703 131 480122 703 131 452656 503 131 449654 703 131 434996 703 131 383831 203 JOLIET 320 Richard 60433 LBP MACHESNEY PARK 913 61111 LBP MATTESON 5527 Allemong 60443 LBP MAYWOOD 2123 6th S.

60153 LBP FHA Insurod Financing Availablo. 1831 LBP FHA Insurod Financing Availablo. $68,250 131 475902 703 4815 Potomac W. 60651 LBP $23,000 12511 Princeton S. 60628 LBP $37,000 7112 Rhodes Ave, S.

60619 LBP $47,800 131 298908 203 131 526124 703 $50,750 $54,300 FHA Insurod Financing Availablo subject to $1 ,485 ropair escrow Uninsured prico $66,900 For a copy ot ropair spocilications call (312) 886-9761. WEST CHICAGO 925 Elizabeth, S. 60185 LBP $75,000 131 353031 203 ZION 281 0 Enoch Ave. 60099 LBP $50.500 1 31 478429 703 FHA tnsurod Financino Availablo. Subioct to $858 repair oscrow.

Uninsurod prico 47,000. For copy ot ropair specifications call (312) 886-0761. FHA CASE PROPERTY ADDRESS LISTING PRICE PROPERTY ADDRESS LISTING PRICE FHA CASE NUMBER: LISTING PRICE FHA CASE NUMBER: NUMBER PROPERTY ADDRESS DANVILLE PROPERTY LISTING FHA CASE ADDRESS PRICE NUMBER: MAYWOOD AURORA 9121 Dobson S. 131 419979 548 FH A Insurod Financing Availablo subjoct to $1 1 1 1 ropair oscrow, Uninsurod prico 1443 Wermes Ave. LBP 212 Blackford St.

LBP $11,450 132 980020 986 FHA insurod Financino Availablo subioct to $2,695 repair escrow. $39,500 131 385107 270 $40,000 132 087951 703 ror copy ot ropair spociricanons can -ivd) ottb-abi. 7306 Dorchester S. LBP $25,450 131 404431 203 FHA Insurod Financing Availablo subjoct to $460 ropair oscrow Uninsurod price $25,000. For copy of ropair spocificalions call (312) 866-9761.

131 302803 203 131 256270 203 131 391806 203 1601 6th S. $13,500 'Vacant Lot 2101 7th S. LBP $53,200 "FHA Insured Financing Avaialblo 119 21st S. LBP $61,500 FHA Insurod Financing Availablo. 7527 Drexel S.

LBP $41,500 131 384763 203 $13,000 131 306742 203 BELLEVILLE 1212 Church N. LBP "FHA Insured Financing Availablo. BELLWOOD 416 23rd S. Vacant Lot CHICAGO 751 61st W. 1221 73rd W.

LBP 3053 79th E. LBP $15,350 132 062826 293 NORTH PEKIN 1 1 Forest LBP PARK FOREST Uninsurod prico $9,000. For copy of repair specifications call (312) 886-9761. DECATUR 2195 Decatur, E. LBP $21 ,750 132 076330 203 FHA Insured Financing Availalbo.

Subjoct to $3,085 ropair escrow Uninsured prico $18,700. For a copy of ropair specifications call (312) 886-9761. 535 Greenwood Ave. LBP $10,700 132 063579 203 1 260 Johns E. LBP $1 7,200 1 32 061 326 203 FHA Insurod Financing Availablo subject to $2,420 repair escrow.

Uninsured prlco $15,000 For copy of ropair spocilications call (312) 886-9761. 1 23-25 Marietta, E. LBP 8,650 1 32 98001 6 986 1040 Monroe $12,000 131 059087 203 1236 Prarie, LBP $10,150 132 059467 203 FHA Insured Financing Available. Subject to $2,045 repair oscrow Uninsurod prico $8,300. For a copy of ropair specifications call (312) 886-9761.

"FHA tnsurod Financing Availablo. 1 1004 Esmond S. LBP $24,600 827 Francisco N. LBP $32,750 8144 Harvard S. LBP $45,500 6432 Honore S.

LBP 7,800 8216 2W Jeffrey S. LBP $31 ,500 "FHA Insurod Financing Aailablo. 12352 Lafayette S. "FHA Insurod Financing Availablo. 9666 Luella S.

LBP $41,500 131 367188 203 131 381881 234 131 290356 203 131 463785 703 131 386951 203 131 427145 548 131 410393 234 131 386906 203 131 382077 203 $18,000 $27,500 $46,050 131 317660 266 131 376029 203 131 235772 203 261 Arrowhead LBP $30,000 1 39 Hemlock 25-2 LBP $26,500 FHA Insurod Financing Availablo. FHA Insurod Financina Availablo subject to $1,194 roDair oscrow. $43,500 132 062063 270 PEORIA 921 Norwood, E. LBP "FHA Insured Financing Available. ROCKFORD 604 Lincoln Park Blvd.

LBP FHA Insured Financing Available "FHA Insurod Financina Availablo subioct lo $1 ,250 rcDBir oscrow. Uninsurod prico $40,360. for copy of ropair specifications call (312) 886-9761 $9,400 131 259887 303 $50,000 131 296241 203 132 060867 270 132 081695 203 132 063714 203 7654 Paxton S. LBP 3188 Southland Rd. LBP $25,000 1012 Union N.

LBP $18,100 1025-27 Warren, N. LBP 4,600 FHA Insurod Financing Availablo. 7823 Racine S. LBP 8428 Rhodes S. LBP $32,000 $49,000 $8,500 131 083287 203 SAUK VILLAGE 2011 218th St.

LBP $30,000 2059-21 9th PI. LBP $30,000 21701 Olivia Ave. LBP $30,000 1 822 Sauk Trail LBP $39,600 131 297764 203 131 398682 203 131 392224 203 131 439756 748 131 404462 203 131 397082 203 131 140379 235 131 471743 503 131 330621 203 131 458028 703 131 384984 203 FHA Insurod Financing Available 11806 Sangamon S. LBP $21,300 71 16 University S. LBP $15,000 5012 Wabansia W.

LBP $44,500 4851 Walton W. LBP $12,000 7201 Winchester S. LBP $20,000 "FHA Insurod Financing Availablo $36,000 132 000846 777 $12,000 132 060847 203 FORD HEIGHTS 1428 Ambassador LBP GRANITE CITY 2464 Kilarney Dr. LBP GREEN ROCK 609 5th St. LBP FHA Insured Financing Availablo.

HARVEY 16320 Emerald LBP FHA Insured Financing Available 'FHA Insured Financing Available subjoct to $1,760 repair escrow Uninsured pnee $38,000. For copy of repair specifications call (312) 886-9761. SOUTH CHICAGO HEIGHTS Uninsurod prico $45,000. For a copy of ropair specifications call (312) 886-9761. 2959 80th Place, E.

LBP $26,600 131 307134 203 1142 91st E. LBP $25,000 131 432103 548 1102 110th Place, W. LBP $27,600 131 500471 703 FHA Insurod Financing Availablo. 347 116th E. LBP $18,000 131 456854 203 346 117th W.

LBP $18,900 131 235801 203 Insurod Financing Availabfo subjod lo $1,320 ropair oscrow Uninsurod prico $17,700. For copy of ropair spocificalions call (312) 886-9761. 7834 Ada S. LBP $54,000 131 372319 203 "FHA Insured Financing Availablo. 6753 02 Artesian N.

LBP $53,000 1 31 431 973 734 Condominium. FHA Insured Financing Availablo call for appoinlmonl (312) 597-8888. 3931 Arthington W. LBP $9,200 131 076251 203 437 Avers N. LBP 5,800 131 161338 203 8418 Baker S.

LBP $25,250 131 399689 203 'FHA Insurod Financing Availablo subioct lo $825 ropair oscrow. Uninsurod prico $24,500 For copy of ropair specifications call (312) 886-9761. 9849 Bensley S. LBP $41,400 131 421021 203 9900 Calhoun S. 131 407969 203 "FHA Insurod Financing Available Bubjoct to $1,293 ropair escrow.

Uninsurod prico $47,000 For copy of ropair Bpocifications call (312) 866-9761. 5039 Carpenter S. LBP 6,000 131 402801 503 9235 Chappol S. LBP $36,600 131 462437 703 FHA Insurod Financing Availablo subioct to $1 ,766 ropair escrow Uninsurod prico $35,000. For copy of ropair spocificalions call (312) 888-9761.

7720 Coles S. LBP $38,000 131 307289 203 $37,900 131 275736 203 $45,000 131 323768 203 132 076519 721 132 076574 748 $21,500 $19,600 203 Interocean LBP SPARTA 106 2nd LBP 217 College, E. LBP UNIVERSITY PARK 1203 Ashridge Lane LBP FHA Insurod Financing Available WASHINGTON PARK 1631 50th N. LBP 131 428642 203 131 418101 203 131 315711 203 131 249742 303 $30,000 $41,500 $10,000 $12,000 131 259081 203 131 269203 203 16142 Finch LBP $14,700 15836 Lexington S. LBP $20,000 $55,600 131 323958 203 CHICAGO HEIGHTS 85 13th E.

LBP 1643 Aberdeen LBP 1941 Cambridge LBP-335 Concord W. LBP COLCHESTER 305 Cathy St. FHA Insurod Financing Available CREAL SPRINGS Rt, 2, Box 950 LBP FHA Insurod Financing Availablo subjoct lo $880 repair oscrow. Uninsurod prico $19,200. For copy of ropair spocilications call (312) 886-9761 MACON $17,500 132 086008 203 7,600 132 073805 303 230 Hight W.

LBP MARKHAM 16533 Winchester LBP $15,500 132 063132 203 $25,000 131 280921 203 Properties also available In Decatur and East St. Louis. For more Information, call HUD at 312-886-9761 $10,000 132 076489 703 HUD Assumes No Liability, Nor Makes Conditions of Sale For Any Zoning Variances For the Proposed Use of the Property. Also, HUD Assumes No Responsibility For Errors In This Listing. All Properties Listed Are Subjoct to Prior Sale, Withdrawal Or Cancellation Without Prior Notice..