Kohan Retail Buys Citadel's Former Loop HQ
Investor Kohan Retail has purchased Citadel's former headquarters in the Loop at a steep discount. This is the firm's third major Chicago office deal in less than a year, signaling continued churn and opportunity in the city's commercial real estate market.
The former Citadel headquarters, a 37-story tower at 131 S. Dearborn Street, was sold to Kohan Retail Investment Group by a joint venture of TPG Angelo Gordon and Hines. While the exact sale price hasn't been disclosed, it's understood to be a significant reduction from the $448 million in debt the owners took on in a 2020 refinancing. The tower is currently about 45% vacant. This acquisition is Kohan's third major play in Chicago's distressed office market in under a year. The firm previously bought the 65-story tower at 311 S. Wacker Drive for $45 million in June 2025 and acquired the 28-story building at 33 W. Monroe Street after buying its $60 million mortgage at a discount. Billionaire Ken Griffin announced in June 2022 that his hedge fund, Citadel, was moving its global headquarters from Chicago to Miami. While he praised Miami's energy, Griffin had previously cited concerns over Chicago's crime rate and political policies as reasons for the relocation. Following the headquarters' move, Citadel has substantially downsized its Chicago operations, which once employed around 1,000 people. The firm's remaining Chicago-based employees have been relocated to a much smaller office space at 353 N. Clark Street. The 1.5 million-square-foot building at 131 S. Dearborn, completed in 2003, underwent a major $100 million renovation in 2018, which added a new conference center, roof deck, fitness center, and lounge. Despite these upgrades and tenants like JPMorgan and Bain & Co., the vacancy left by Citadel created a significant challenge for the previous owners. The deal reflects a broader trend in Chicago's downtown office market, which saw vacancy rates hit a record high of 26.3% in the first quarter of 2025. This environment is creating opportunities for investors like Kohan to acquire properties at a low basis, betting on future leasing or potential conversions.
