While reports that Tribune Media was "close" to signing a deal sell its namesake 1925 neo-gothic tower to LA-based developer CIM Group emerged in June, the two parties have finally put pen to paper, settling on sale price $240 million. The transaction will not only see CIM and Chicago-based partner Golub & Co. take over the 740,000-square-foot landmarked Tribune Tower, but also a prime development site to the east which currently serves as a lowly surface parking lot. Combined, the three-acre site could support a whopping 2.4 million square feet of potential mixed-use space.
"[Tribune Tower] is in an area that, today, is attracting new businesses and residents," said Avi Shemesh, Co-Founder and Principal of CIM Group in an official statement. "After being active in the Chicago market for more than a decade, we have recently made several compelling investments that have expanded our growing presence in the city."
CIM has indeed expanded its Windy City real estate portfolio. The California-based venture is behind Block 37’s Marquee apartments, the soon-to-open 40-story residential tower at 1001 S. State, and 46-story rental project slated for 1326 S. Michigan Avenue. With all three of projects coming from architect Solomon Cordwell Buenz, it’s perhaps a fairly safe bet that CIM would once again turn to the Chicago-based design firm for the redevelopment of the Trib’s empty lot.
As for the building’s curreent tenants, Tribune Media will move out of the landmark Michigan Avenue tower as part of the sale and redevelopment deal. The tower’s largest tenant, Tribune Publishing — which was spun-off into a separate entity in 2014 and later re-branded as tronc (all lower case) — plans to stay put through 2018, per its lease agreement.
- Tribune Tower to be sold to CIM Group [Crain’s]
- Tribune Media inks deal to sell Tribune Tower to developer [Chicago Tribune]
- Tribune Media Reportedly Close to Finalizing Sale of Landmark Tower [Curbed Chicago]
- Upcoming Tribune Tower Redevelopment Could See New Condos, Hotel [Curbed Chicago]