Legacy Investing Acquires Former Cboe Headquarters for $40M Data Center Conversion in Chicago

Major Chicago Office Building Sold for Data Center Conversion

Legacy Investing has acquired a significant Chicago office property that will be transformed into a data center facility, according to real estate reports. The investment firm purchased the former headquarters of options exchange company Cboe Global Markets for $40 million, with plans to develop a 33MW data center expected to launch in late 2025.

Major Chicago Office Building Sold for Data Center Conversion
Property History and Rapid Value Appreciation
Strategic Power Infrastructure Advantages
Legacy Investing’s Growing Data Center Portfolio
Chicago’s Evolving Commercial Landscape
Industry Implications and Market Context

Property History and Rapid Value Appreciation

The six-story, 385,000-square-foot building at 400 S. LaSalle Street previously served as Cboe’s headquarters until the company confirmed relocation plans in 2019. Sources indicate the property changed hands just last year when Prime Group and Capri Investment Group purchased it for $12 million with intentions to develop a 50MW data center. The recent $40 million sale to Legacy Investing represents a substantial value increase in approximately one year, analysts suggest.

Strategic Power Infrastructure Advantages

Daniel English, Legacy co-founder and managing partner, emphasized the critical importance of existing power infrastructure in the acquisition. “They [Prime Group and Capri] played a critical role in assuring that the building has enough power,” English told CoStar. “There is a shortage of power throughout the country right now. It’s a great partnership with Prime where they were able to create value, and now we’re able to create the next stage of value.”, according to market trends

Legacy Investing’s Growing Data Center Portfolio

Reports indicate Legacy Investing manages approximately 20 million square feet of industrial, logistics, life sciences, and data center real estate across the United States. The company’s data center holdings reportedly include multiple data center facilities from various operators, including Flexential locations in Texas and Oregon, Equinix data centers in Virginia and California, and several T5 data centers. The firm has also previously sold at least one Ohio facility to H5, according to industry sources.

Chicago’s Evolving Commercial Landscape

The transaction occurs amid significant changes in Chicago’s commercial real estate market. Cboe completed its headquarters relocation to the Old Post Office in 2020 and moved its open-outcry trading floor to the Chicago Board of Trade Building in 2022. The conversion of prominent office buildings to alternative uses like data centers reflects broader market trends as demand for digital infrastructure grows while traditional office space requirements evolve.

Industry Implications and Market Context

The rapid appreciation of the LaSalle Street property value highlights the increasing premium placed on properties suitable for data center conversion, particularly those with established power infrastructure. Industry analysts suggest that power availability has become a critical factor in data center site selection nationwide, with suitable conversion properties commanding significant premiums in competitive markets.