In a statement released Aug. 30, Tribune Media Company announced that CIM Group has agreed to pay up to $240 million for the iconic Tribune Tower.
The deal would include $205 million paid in cash at closing–anticipated for third quarter 2016– and an additional payment of up to $35 million contingent upon the satisfaction of certain conditions.
The Chicago Tribune also shared on social media that the company does not plan to leave the building, 435 Michigan Ave., until the end of its lease in 2018. Meanwhile, following the news of the sale, Tribune affiliate WGN Radio announced that it hopes to renew its lease after 2018.
CIM’s investments in Chicago include Block Thirty Seven, Marquee at Block 37, and 440 S. LaSalle, among others.
Built in 1925, the iconic building is 35 stories high and has nearly 740,000 square feet of space. The sale also includes a 36,000-square-foot development site located directly to the east of Tribune Tower, fronting Cityfront Plaza.
“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.”
Since the beginning of the year, Tribune Media has sold several smaller properties in markets ranging from South Florida to Seattle for gross proceeds of approximately $89 million. Earlier this year, the company announced that it 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 are also expected to close in the third quarter of 2016.
“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. “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.”