Hines Interests L.P. is preparing to break ground on a 45-story office tower on the Chicago River without lining up tenants in advance, the first so-called spec office development in downtown Chicago in 14 years.
The joint venture of Houston-based Hines, Montreal-based real estate company Ivanhoe Cambridge and local developer Larry Levy is set to announce as soon as Wednesday that it has financing in place and plans to move forward with the 900,000-square-foot office tower at 444 W. Lake St., according to a source.
By building on spec, Hines is making a bold bet that it will be able to sign tenants during construction. The move marks a big step in the downtown office market’s recovery from a severe downturn.
It is the first spec office building launched downtown since 1998.
