Lease / Own at 55 West Wacker

In 2007, ownership completed a vertical subdivision of 55 West Wacker, providing office owners the option of owning or leasing their space.

Vertical subdivision in-depth

A vertical subdivision allows for a property to be legally subdivided into multiple parcels from what would otherwise be a rigid configuration based on current physical conditions. Buyers of a vertically subdivided office acquire a set of lots (each with its own property ID) that represent the existing physical layout. Ownership is fee simple in nature (same as a condominium) and affords the same benefits as condominium ownership.

Difference between vertical subdivision and office condominium

Chicago condominium law requires the developer to subdivide individual offices based on its current physical layout. A vertical subdivision allows the developer to subdivide the property in “virtual” lots, offering owners considerably more flexibility in buying or selling portions of space.

Owning vs. Leasing

There currently exists an Owner’s Association that contracts with MB Real Estate Services, LLC to manage the building. Building owners each pay their proportionate share of operating expenses. The largest owner in the association is 55 Chicago Partners, LLC. This entity leases space and is the landlord to the leasehold tenants. Operating expenses and real estate taxes are paid by this entity and handled as they are at every other office building in downtown Chicago. The association is an efficiently run organization that allows owners and tenants (through 55 Chicago Partners) alike to provide input into how the building is managed.