Tribune Media is looking to sell its historic tower — but who will buy it?
Tribune Media has announced that they are going to sell the historic Tribune Tower in Chicago, and they expect lots of interest in it.
The tower, situated on North Michigan Avenue, is located in a prominent area in Chicago’s downtown shopping district, and the sale price may top $100 million, according to a Chicago Tribune report.
The building will probably be used for something entirely different from the news reporting it has become known for for so many years — 90 years, in fact.
That means the longtime tenants — the Chicago Tribune — will be finding a new home, and it probably won’t be as regal as the striking tower.
Most likely, much of it will be converted into retail or residential space, given the location. It is also possible that a hotel will move in or perhaps it will be used as office space.
Developer Oxford Capital is working on the sale, and they have started a similar project at nearby 360 N. Michigan Ave. That building, the London Guarantee & Accident Building, will be redeveloped into an upscale hotel along with a couple stories of retail space.
Oxford may opt to sprint for the Tribune Tower property and do a similar redevelopment. The company was quoted in the report as saying that they like this sort of project, particularly its complexity and multi-dimensionality.
Another potential developer is Murphy Capital Management, which does plan to take a look at the site — not just the bilding but the adjacent land, which is currently a parking lot. Although the property will cost about $100 million, the cost to develop it will certainly be significantly higher.
The Tribune Tower was built back in 1925 as the Chicago Tribune’s headquarters, and it has served as the paper’s home until this day. It has about 737,000 square feet of space, although it is zoned for up to 2.4 million square feet.
Tribune Media has been in the midst of restructuring, as many newspapers have. They recently spun of the publishing division, which includes papers such as the Chicago Tribune, Los Angeles Times, Baltimore Sun, and numerous other dailies. They kept the broadcasting and real estate portfolio.
The tower is probably best suited for a multiuse project, likely with a residential component.
Nearby, the site of the old Chicago Sun-Times building currently as a huge 96-story hotel with “Trump” on the front of it. The Tribune site could be even more spectacular with the right developer.