Tribune Tower, Chicago’s monument to newspaper journalism, is sold.
Los Angeles-based developer CIM Group announced Wednesday it completed the $240 million purchase from Tribune Media, with plans to transform the historic North Michigan Avenue property into a mixed-use redevelopment.
Elements of the development could include retail, residential, office space and a hotel, with the landmarked 36-story tower at the center of any plans, according to CIM.
“We are very excited to be involved with such an iconic building — one that is a significant part of the fabric of Chicago — and we take this responsibility seriously,” said Avi Shemesh, co-founder and principal of CIM. “Our goal is to work with the city to preserve the historic aesthetic of the tower and do our best to maintain it within the context of the surrounding buildings.”
Built in 1925, the neo-Gothic Tribune Tower was designed by New York architects Raymond Hood and John Mead Howells, who won a contest held by Tribune co-publishers Robert R. McCormick and Joseph Patterson to create the newspaper’s new headquarters. It was named a Chicago landmark in 1989.
The three-acre property includes a surface parking lot to the east that will give rise to new construction, CIM said. The tower encompasses 737,000 square feet, but the property is zoned for up to 2.4 million square feet.
The buildings to the north of the tower were built for WGN Radio and WGN-TV, while the newspaper’s former printing plant sits to the east.
“As for the surrounding buildings, our intent is to maintain as much as possible — this could be the facades and perhaps even the entire buildings,” Shemesh said. “They’re beautiful buildings.”
The Tribune reported last month that Chicago developer Golub & Co. would partner with CIM to buy the tower and adjacent property. Terms of the deal called for $205 million cash at closing, with up to $35 million in contingent payments.
Getting the redevelopment off the ground could take some time. CIM has not selected an architect and will look for municipal and civic input to come up with a preliminary design over the next six to nine months. Developers would like to begin construction by fall 2018.
Earlier this month, Ald. Brendan Reilly, 42nd, said he would oppose any retail development south of the site that blocked views of the Tower’s facade from the Michigan Avenue Bridge and the Ogden Slip view corridor, which runs from North Michigan Avenue to Lake Shore Drive.
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Tribune Tower’s landmark status
ILLINOIS
B
A
Tribune Tower
C
MICHIGAN
Ogden Slip view corridor
Google image
A
B
WGN Radio Building
WGN Television Building
The four-story facility was built for the radio station in 1935. Today’s occupants include Tribune Media and Dylan’s Candy Bar.
Built in 1950 as the home of WGN television studios, this building varies in height from eight to 11 stories.
North
West
South
East
Protected
landmark
status
illinois
22nd
A
B
N
12th floor
12th
michigan
Tribune
Tower
W
E
C
S
Tribune Tower
Ogden Slip view corridor:
Former printing plant:
C
The 36-story, neo-Gothic skyscraper, finished in 1925, was the winning entry in a worldwide architecture competition. Today, it houses a variety of companies.
Since the 1980s, city policy has encouraged developers to maintain a corridor of open space and low-rise buildings between North Michigan Avenue and Lake Shore Drive.
This part of the complex, completed in 1920, was the Chicago Tribune’s first building on North Michigan Avenue. Current offices include WGN Radio.
@ChiTribGraphics
Source: Tribune reporting
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illinois
Tribune
Tower
A
B
C
michigan
Ogden Slip view corridor
Google image
WGN Radio
Building
WGN T.V.
Building
A
B
The four-story facility was built for the radio station in 1935. Today’s occupants include Tribune Media and Dylan’s Candy Bar.
Built in 1950 as the home of WGN television studios, this building varies in height from eight to 11 stories.
Protected landmark status
illinois
A
B
N
michigan
Tribune
Tower
W
E
C
S
Former
printing plant
Ogden Slip
view corridor:
C
This part of the complex, completed in 1920, was the Chicago Tribune’s first building on North Michigan Avenue. Current offices include WGN Radio.
Since the 1980s, city policy has encouraged developers to maintain a corridor of open space and low-rise buildings between North Michigan Avenue and Lake Shore Drive.
Tribune Tower
The 36-story, neo-Gothic skyscraper, finished in 1925, was the winning entry in a worldwide architecture competition. Today, it houses a variety of companies.
North
West
South
East
22nd
12th floor
12th
@ChiTribGraphics
Source: Tribune reporting
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“Our intent is to maintain the tower and the views around it,” Shemesh said. “We will do everything we can to maintain as much as possible and not just build to the maximum allowable limits.”
Founded in 1994, CIM made its first Chicago acquisition in 2012 with the Block 37 complex on State Street, and its footprint is growing. CIM partnered with Chicago-based Murphy Development Group on a planned 46-story apartment tower at 1326 S. Michigan Ave., and is building a 41-story residential tower at 1001 S. State St., in partnership with Golub.
Meanwhile, Tribune Media is making significant headway toward selling its entire $1 billion real estate portfolio. In addition to Tribune Tower, the Chicago-based company announced Wednesday it sold the Times Mirror Square building and Olympic printing plant in Los Angeles.
Tribune Media said gross proceeds from the three buildings could total $475 million, including contingent payments.
“We have made considerable progress toward achieving our goal of realizing at least $1 billion of gross proceeds from the sale of some of our most significant real estate holdings,” Peter Liguori, Tribune Media’s president and CEO, said in a statement.
Tribune Media spun off its publishing division — including the Chicago Tribune, Los Angeles Times and other daily newspapers — in August 2014, retaining the broadcasting business and real estate portfolio.
Tronc, the Chicago-based newspaper chain formerly known as Tribune Publishing, is Tribune Media’s largest tenant. Its leases at Tribune Tower and Times Mirror Square run through June 2018.
rchannick@chicagotribune.com
Twitter @RobertChannick
