Chicago Post Office Sold

[LeannaM]

Fioretti said he told the groups that it would cost at least $750 million and, more likely, about $1 billion to redevelop the site. He said it is likely the city would devote tax-increment financing subsidies to help the developer.

Containing 2.5 million to 2.8 million square feet and spanning the Eisenhower Expressway and two city blocks, the building is so huge that developers have struggled for more than a decade to come up with a workable plan for the space.

Built in 1932 and once the world's largest postal facility, the building has been exempt from property taxes. Its assessed value would depend, in part, on its uses and the revenues derived from those uses.

http://www.chicagotribune.com/classi...,6727605.story

[3WC]

Wow.

The value is not in the land but in the air rights.

The city will never permit the thing to be torn down, which would require closing the expressway and the railroad for an extended period of time.

Besides, the cost to demolish it would probably be as much or more than the purchase price.

The people who bought it are not stupid. They will renovate and adapt the building. And hopefully, make a ton of money. Lot's of risk and it's clearly a long term project. But, it's in Chicago, a city where things like this can be accomplished.

[crawford]

The value is not in the land but in the air rights.

The city will never permit the thing to be torn down.

These two sentences are contradictory. If Chicago does not allow its demolition, then there are no air rights.

And I doubt it would sell for $40 million with an anti-demolition clause. Whether it will be a success, we don't even know what will be proposed.

But, given the global economy and the space glut in downtown Chicago [[one of the highest in the country), this is a project that will likely be measured in decades, not years.

[Lorax]

A building of this mass and construction can easily piggy-back a tower of up to 50 floors without a problem. This is what will ultimately be done with it. The lower floors a combination of hotel, apartments or condos, retail on the first couple of floors, and then a highrise with open floor plates ready to use for whatever.

[crawford]

A building of this mass and construction can easily piggy-back a tower of up to 50 floors without a problem. This is what will ultimately be done with it. The lower floors a combination of hotel, apartments or condos, retail on the first couple of floors, and then a highrise with open floor plates ready to use for whatever.

We are talking about air rights, not structural engineering. You could buid a 1,000 floor tower if you wanted. What's your point?

Air rights are obviously only available on sites underbuilt to exisiting zoning. If you want air rights, you need to demolish the building.

I guarantee this site is waaaaaay overbuilt to existing zoning.

And, besides ignoring zoning, your fantasy scenario ignores the fact that Chicago is one of the most overbuilt markets in the nation. There won't be anything happening of any magnitude for a couple of years at least, and this site was pretty much worthless even at the height of the real estate boom.

[Lorax]

We are talking about air rights, not structural engineering. You could buid a 1,000 floor tower if you wanted. What's your point?

Air rights are obviously only available on sites underbuilt to exisiting zoning. If you want air rights, you need to demolish the building.

I guarantee this site is waaaaaay overbuilt to existing zoning.

And, besides ignoring zoning, your fantasy scenario ignores the fact that Chicago is one of the most overbuilt markets in the nation. There won't be anything happening of any magnitude for a couple of years at least, and this site was pretty much worthless even at the height of the real estate boom.

What's with the 3rd degree? Where in my statement does it discuss air rights? Others may talk of air rights, I'm not.

Get off your horse, Sparky.