Last Thursday, Tribune Media announced that Tribune Tower is up for sale, sparking a resounding echo in the media.
The emblematic building is certainly up for sale. However, no price and no buyers have been announced yet, giving the announcement even more of a mysterious edge. Speculation is at its prime, while analysts are racing to guess how the Tribune Tower will be repurposed and for what sum.
The historic landmark pinpointing the gate to North Michigan Avenue was finalized in 1925. Ever since, it has served as the Chicago Tribune headquarters. The neo-Gothic tower spans three acres and covers 737,000 square feet. For the next owner, this emblematic building might just be the lucky draw, as it is in fact zoned for 2.4 million square feet.
While Tribune Media announced that Tribune Tower is up for sale, the recently employed Eastdil Secured real estate investment banker is not only seeking for a full-scale sale. Tribune Media might also be searching for a partnership that will prove fruitful with view to redeveloping the Tribune Tower.
It is expected that interest in the redevelopment of the Tribune Tower will be quite high, given the towering building’s position and real estate development advantage. According to some developers, the sales price could easily top the 100 million dollars landmark. If development trends in the area are followed, rumors have it that the historic building could become part of a housing project, a new hotel or a joint development project.
With the huge potential of multi-use redevelopment, the Tribune Tower is a major real estate asset. Last year, Tribune Real Estate had revealed plans to maximize space use by adding retail, residential and hotel components to the parcel. Also last year, Tribune Media only retained its portfolio for real estate, as well as the broadcasting portfolio, while spunning off the publishing division.
The CEO of Murphy Capital Management, John Murphy declared that the Tribune Tower parcel is one of high interest on the market. He enforced the idea according to which the parcel and the emblematic building could well top 100 million dollars as selling price.
A bit of insight on the market indicates that a redevelopment of the lot and the building would topple the flashy Trump Tower in the vicinity.
According to Murphy, the great advantage of the Tribune Tower is that it is indeed the gateway to the Michigan Avenue retail, a perk that the 2009 Trump Tower lacks.
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