Tribune Tower sold to developer
The iconic Tribune Tower on Michigan Avenue in downtown Chicago has been sold for about $240 million to Los Angeles-based developer CIM Group, Chicago-based Tribune Media said Tuesday.
The sale is expected to close by late September, ending media ownership of the landmark and paving the way for retail, residential and hotel uses, according to the Chicago Tribune.
"Tribune Tower is a prominent property with a rich history that has been a feature of the Chicago skyline for nearly a century. It's in an area that, today, is attracting new businesses and residents," said Avi Shemesh, co-founder and principal of CIM Group.
Built in 1925, the 35-story Gothic revival tower has nearly 740,000 square feet of space. The sale also includes a 36,000-square-foot development site directly to the east of Tribune Tower.
Tribune Media, which owns 42 TV stations and WGN Radio, plans to move its back-office operations, such as human resources, finance and other functions, to another Chicago location, said Gary Weitman, a Tribune Media spokesman.
The Chicago Tribune, under Tribune Publishing since 2014, also operates in the building and has a lease until June 30, 2018, said Tribune Publishing spokeswoman Dana Meyer
"(We have) no plans to move out early," Meyer said.
Since earlier this year, Tribune Media has sold several smaller properties in markets ranging from South Florida to Seattle for about $89 million. The company had agreements to sell the north block of the Los Angeles Times Square property and the nearby Olympic printing plant, both in Los Angeles. Those sales also are expected to close about the same time as the Tower.
"It is a gem of architectural and structural accomplishment and a constant reminder of the important role that Tribune has played in the development of the city itself," said Peter Liguori, Tribune Media's president and CEO in a statement.
CIM Group is a real estate firm that invests in cities throughout North America. CIM said in a statement that it works to maintain the building's integrity through refurbishment and repositioning it. CIM's other investments in Chicago include Block Thirty Seven, Marquee at Block 37, and 440 S. LaSalle.