Home News Cannabis company Verano Holdings signs Old Town office lease

Cannabis company Verano Holdings signs Old Town office lease

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The deal marks the end of Verano’s tricky process of finding a new home in a new construction or quality building in the city. It was difficult to finalize such leases because they remained illegal. We were unable to get approval from our investor bank to lease the cannabis company.

Verano was trying to find a way around that challenge through the secondary market earlier this year. Negotiation of potential sublease transactions Restaurant software company Toast and marketing communications company Dentsu Aegis Network are located at 515 N. State St. The property comes from Wells Fargo.

Now, Verano has found a buyer in Vancouver, British Columbia-based developer Onni Group. Onni Group has built over 74,000 square feet of office space into his final of three apartment towers in Old Town Park. Verano will occupy most of his fourth floor in the office portion of the building and will be his tenant in the building’s first office, sources said.

The deal comes just two months after Onni received a $550 million loan from Wells Fargo to refinance the entire Old Town Park complex, according to Cook County real estate records. It was unclear if Onni had run into any trouble with the lender in pursuing the deal with Verano, and a spokesperson for Verano and his Onni declined to comment.

Verano went public in early 2021 and nearly tripled its main office headcount to about 120 the following year, so it needed more space.

The completion of the lease could open the door to other potential office options for companies in the weed industry. Some of them are headquartered in Chicago. Verano, along with Chicago-based competitors Green Thumb Industries and Cresco Labs, is his three of the five largest US public companies that grow and sell marijuana. PharmaCann, one of the largest privately held companies in the field, is also based locally.

Many office landlords are willing to rent space to cope with record vacancy rates and weakening demand for remote work. The building’s owners want help from the federal SAFE Banking Act, a bill that opens up the ability of banks to do business with cannabis companies. The bill was originally proposed in 2017 and was approved by the House earlier this year, but failed to pass the Senate.

Verano leasing also helps prove office space is a viable multi-family amenity as remote work increases. Just as more office landlords are incorporating co-working spaces into their buildings to attract new tenants and provide existing tenants with extra space, apartment developers are encouraging residents who regularly work from home. May view the workspace as a valuable perk for Developer Cedar Street recently took that approach with Uptown. contract with WeWork It operates a coworking space on the lower floors of a historic bank building that has been converted into apartments.

Eric Myers and Kathleen Bertrand of the Chicago office of real estate services firm Transwestern are overseeing the lease of Three Old Town Park.

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