State reaches agreement to sell Thompson Center downtown
An agreement to sell the state's James R. Thompson Center at 100 W. Randolph St. in downtown Chicago to the development firm JRTC Holdings, LLC was announced Thursday by Gov. J.B. Pritzker and the Illinois Department of Central Management Services.
"I'm pleased to announce that we have finalized a purchase sales agreement for the James R. Thompson Center, not only saving taxpayers $800 million but also adding vitality to Chicago's LaSalle Street corridor by honoring the original design through a modern lens," Pritzker said in a statement.
The state announced in December that JRTC Holdings had been selected as the purchaser of the building through a competitive request-for-proposal process.
Under the public-private partnership, the state will receive a $70 million upfront payment for the purchase of the property while also retaining about 425,000 square feet of newly renovated office space.
The closing of the sale is expected to be completed this summer. Meanwhile, the state and JRTC Holdings will work together on the interior design and floor plans of the office space the state will occupy.
Officials have cited the expense of maintaining the 37-year-old building among the reasons for the sale.
Thursday's announcement seemed to answer some big questions about the future of the 17-story building designed by renowned architect Helmut Jahn, who died last year in a bicycling accident in Campton Hills.
Michael W. Reschke, owner of JRTC Holdings and chairman & CEO of the Prime Group, Inc., said a revitalized Thompson Center would retain its place amid Chicago's cityscape.
"The execution of the purchase and sale agreement is a significant milestone and represents our commitment to renovate and reposition this iconic building into one of the premier class A office buildings in the city with the latest building systems and technologies to promote the health, wellness, and comfort of its occupants," Reschke said. "Our investment will anchor and support the Loop's continued economic revitalization and will boost the much-anticipated renaissance of the LaSalle Street corridor."
According to the company, the renovation would begin later this year and take about two years to complete.
The work is planned to include replacement of the exterior curtain wall with new, energy-efficient glass; enclosure of the office floors from the atrium with a new glass partition; a private lobby and a dedicated secure entrance for the state's offices, as well as their full renovation on floors 4 through 9; and replacement or upgrades to building systems such as its heating, ventilation and air conditioning.