Tribune Co. Sells Tribune Tower For $240 Million
CHICAGO (CBS) -- The Tribune Tower is no longer owned by the newspaper's parent company.
In a deal worth $240 million, which includes $205 million in up-front cash, Tribune Media Co. announced it has sold the iconic, gothic tower to CIM Group.
CBS2's Dana Kozlov reports, CIM agrees to pay another $35 million, if certain unspecified conditions are met.
Built in 1925, the 35-story building on North Michigan Avenue has nearly 740,000 square feet of space. The sale also includes a 36,000-square-feet space located directly to the east of Tribune Tower.
The sale is expected to close in the third quarter, Tribune said. The tenants of the neo-gothic tower could change as early as next spring as the building likely takes on a new identity.
"Tribune Tower has been a unique part of Chicago's skyline since the 1920s," said Peter Liguori, Tribune Media's President and Chief Executive Officer. "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."
Architecture expert Lee Bey says the name certainly helps tell part of the Chicago story. "The Tribune name certainly has cachet, and wouldn't be surprised if the new name incorporates it somehow," Bey said.
"Nonetheless, monetizing the significant assets of Tribune Media's real estate portfolio is a strategic priority for the company and we are extremely pleased with the outcome of this sales process," Liguori continued. "Importantly, we're achieving prices consistent with the $1 billion valuation of our portfolio."
Since the beginning of the year, Tribune Media has sold several smaller properties in markets ranging from South Florida to Seattle.
CIM Group is a real estate and infrastructure investment firm that also has a stake Chicago include Block Thirty Seven and the new residential building, Marquee at Block 37.
A spokesperson for CIM wouldn't comment on specific plans for the building, however Bey says his best guess is that the new owners will make it a mixed-use development, possibly including a hotel.
