Software firm ActiveCampaign will more than triple the size of its headquarters as it plans to add 225 employees in the Loop in the next two years.
The company has leased about 52,000 square feet in a 17-story vintage office building on Dearborn Street, where it plans to move in August, CEO and founder Jason VandeBoom said.
ActiveCampaign has outgrown a 16,000-square-foot office along the Chicago River near Union Station, after growing from fewer than 30 employees in 2015 to about 125 now, he said.
“It can’t some soon enough,” VandeBoom said of the move. “It’s kind of a big jump in space, but we expect conservatively to be at 200 to 250 (employees) by year-end, because we’re behind on hiring.”
The new space can accommodate 350 workers, and the company expects to reach capacity by 2018 or 2019, VandeBoom said. The 10-year, single-floor lease includes options to add additional floors, he said.
The building extends from Dearborn to State Street, along the north side of Madison Street. It is also home to Chicago Public Schools’ headquarters, and was previously Sears’ downtown flagship until that store closed in 2014.
ActiveCampaign’s deal is the latest example of older buildings with wide floors attracting technology and creative firms as office tenants. The Merchandise Mart, Sullivan Center and former Apparel Center — now known as River North Point — also have attracted companies that want wide, open floors in order to foster collaboration.
“They’re absolutely at a premium right now,” office tenant broker Jeff Skender said of big floors. Skender, Ari Klein and Scott Shelbourne of Cushman & Wakefield represented ActiveCampaign in the lease.
Building owner Beacon Capital Partners was represented in the lease by Jack O’Brien and Caroline Colnon of the Telos Group. Boston-based Beacon bought the 940,341-square-foot building for $202 million in October 2015.
ActiveCampaign moved into its Riverside Plaza offices just two years ago, when it leased 4,000 square feet, VandeBoom said. After expanding twice in that building, the company has run out of room to grow, and plans to have some employees in co-working spaces until construction of the Dearborn space is completed, VandeBoom said.
The company provides technology for email marketing, automated marketing campaigns and customer retention, mostly serving small and midsized companies.
ActiveCampaign raised $20 million, its first outside funding, from Boston-based Silversmith Capital Partners in 2016, and has no immediate plans for additional funding rounds or an eventual sale of the company, VandeBoom said.
Annual revenues at the company top $20 million and VandeBoom said he believes that number can grow to $100 million within three years. Revenue growth comes from new customers as well as existing customers adding services, he said.
The new space will be designed with an open, collaborative cafe area in the center. Teams will be located together in sections along the outer walls. Features will include a game room and a “speak-easy” meeting area hidden behind bookshelves.
“It’s a quiet place to work when you really want to get away from everyone,” VandeBoom said. “We’re trying to maximize the benefits of (open space) while minimizing any issues that come with that.”
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