Tribune Media Sells Chicago's Tribune Tower
August 30, 2016 at 5:32 PM (PT)
The TRIBUNE TOWER, home to TRIBUNE MEDIA News-Talk WGN-A/CHICAGO and its former sister newspaper the CHICAGO TRIBUNE as well as TRIBUNE MEDIA and TRONC (formerly TRIBUNE PUBLISHING) headquarters, has been sold to CIM GROUP for up to $240 million ($205 million cash and up to $35 million more for undisclosed contingencies), with the deal expected to close in OCTOBER.
The iconic 35-story, 740,000 square-foot building on CHICAGO's Michigan Avenue with WGN's "Showcase Studio" at street level has been on the block since last OCTOBER and includes the 36,000 square-foot plot next door; the real estate went with TRIBUNE MEDIA, the broadcasting half of the former TRIBUNE CO., when the latter split into two (the company now known as TRONC took the newspaper operations). TRIBUNE MEDIA sold the north block of the LOS ANGELES TIMES' Spring Street property and printing plant earlier this year, and has sold other property in SEATTLE, SOUTH FLORIDA, and elsewhere for about $89 million since the beginning of 2016.
“TRIBUNE TOWER has been a unique part of CHICAGO’s skyline since the 1920s,” said TRIBUNE MEDIA President/CEO PETER LIGUORI. “It is a gem of architectural and structural accomplishment and a constant reminder of the important role that TRIBUNE has played in the development of the city itself. Nonetheless, monetizing the significant assets of TRIBUNE MEDIA’s real estate portfolio is a strategic priority for the company and we are extremely pleased with the outcome of this sales process. Importantly, we’re achieving prices consistent with the $1 billion valuation of our portfolio.”
“TRIBUNE TOWER is a prominent property with a rich history that has been a feature of the CHICAGO skyline for nearly a century. It’s in an area that, today, is attracting new businesses and residents,” said LOS ANGELES-based CIM GROUP Co-Founder-Principal AVI SHEMESH. “After being active in the CHICAGO market for more than a decade, we have recently made several compelling investments that have expanded our growing presence in the city.”