The Tribune Tower, home of the Chicago Tribune for 90 years, will be sold off.
It’s the end of an era: the Chicago Tribune is vacating the iconic Tribune Tower in downtown, and it’s going to be sold for quite a price tag.
It’s estimated it will cost about $100 million to snap up this property, not county the huge amount of costs that will go into developing it into something else, like a hotel or a residential unit with retail shops — and there are plenty who may be willing to pay that price.
Tribune Media announced it would be selling the Tribune Tower in Chicago, located on North Michigan Avenue in a prominent part of the city’s fashionable shopping district, according to a Chicago Tribune report. It will be a bittersweet parting for the residents, who first moved in back in 1925, and have seen the newspaper industry tank in recent years.
What it will ultimately be used for is unknown, and ultimately up to the developer that buys it. It could be turned into retail or residential space, which would make sense in its current location. It could also be turned into a hotel — perhaps even more glamorous than the nearby Trump hotel, which was built on the grounds of the old Chicago Sun-Times building. Or maybe it will be converted into office space.
Oxford Capital is one of the interested developers. They’re working on a similar project at nearby 360 N. Michigan Ave., a building they are turning into an upscale hotel with some retail space, and they tend to like complex, multi-faceted projects — and this would certainly be one of those.
If Oxford does buy the Tribune Tower, it may conduct a similar redevelopment project.
Another potential suitor, Murphy Capital Management, is looking at the site and adjacent land, which right now is a parking lot.
The Tribune Tower has up to 2.4 million square feet that it is zoned for, even though right now it only uses about 737,000 square feet, so there is certainly room for growth.
Tribune Media, meanwhile, is making this move as part of a longer term strategy. Recently, the company spun off its publishing division, including newspapers like the Chicago Tribune, Los Angeles Times, and Baltimore Sun, along with a large group of smaller daily papers, and they held on to the broadcasting and real estate side of the business.