On Thursday, Chicago's Mayor Rahm Emanuel announced the finalization of the sale of the Old Main Post Office to 601 W Companies LLC (601W), a New York-based private real estate investment company that owns Chicago's Aon Center and Prudential Plaza. International Property Developers North America Inc. bought the property in 2009, but plans for redevelopment stalled and left the property abandoned for years. The mayor and the Chicago Department of Planning and Development announced plans earlier this year to acquire the building and accept bids for the vacant property, but held action after receiving notice that 601W was in talks to take over the project; the city gave the company until June 1 to complete the deal. The property sold for $130 million, said 601W Principal Mark Karasick.
"Today we are taking another significant step towards transforming the Old Main Post Office site into an economic driver for the City of Chicago," Emanuel said in a statement. "This project will create thousands of jobs and generate new economic opportunities for residents in our neighborhoods, while restoring and reviving an iconic gateway to our city."
The 2.5 million-square-foot building has not been occupied since the United States Postal Services moved its operations in 1995. Karasick said that 601W plans a three-phase $500 million redevelopment of the property, including the revamping of all HVAC, plumbing and mechanical systems, expecting to court office tenants next year and begin occupancy in 2018. "With a new owner, the building has a brand new future as one of the city's most desirable business addresses," said Chicago Ward 25 Alderman Danny Solis. "I'm confident in 601W's ability to deliver on its plan and look forward to substantial progress in the months ahead."
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