In the same statement, the state said it is scheduled to complete the sale by April 2022. That appears to be a delay from the previous target of Dec. 31 of this year, as noted when Crain’s last reported on this matter, and the date of January 2022 listed on Page 10 of the RFP as the “PSA Execution deadline." PSA stands for Purchase and Sale Agreement.
“Several vendors interested in responding to the RFP have requested additional time to develop their proposals to reflect a number of positive developments that will impact pricing including the zoning change passed by City Council, memorandum of understanding with the Chicago Transit Authority, and a memorandum of agreement with the Illinois Department of Natural Resources,” CMS said in the statement.
But the agency did not directly answer whether a currently overbuilt office market, in which many employers are trimming their space after the COVID-19 pandemic, also is a reason for the shifting timetable.
State offices already have begun vacating the historic but dilapidated structure for newer quarters at 555 W. Madison in the West Loop, a process that has been somewhat slowed by the COVID-19 pandemic.
State officials familiar with the matter said the main reason for the RFP delay indeed is to give potential buyers more time to familiarize themselves with the complex site, which include a CTA transit station and direct connection to the city’s underground pedway system. They also noted a change in city zoning on the site since the RFP was issued, doubling to 2 million square feet the size of an office tower which could go on the property at LaSalle and Randolph.
However, officials also agreed the office market may be more fully recovered by next spring, something that could get the state a better price.
Preservationists are trying the save the building, which has hundreds of millions of dollars of deferred maintenance. But it’s not clear if they’ve been able to assemble a competitive financial package.
via Crain’s Chicago Business
August 16, 2021 at 09:01PM