Deal Reached to Sell Tribune Tower For $240 Million

CHICAGO, IL — A deal has been reached to sell off the iconic Tribune Tower for $240 million.

The deal has Los Angeles-based CIM Group, an “urban real estate and infrastructure fund manager,” set to pay $205 million cash at the closing and another $35 million “upon the satisfaction of certain conditions,” according to a statement released by Tribune Media.

The sale is expected to close in the next month.

The landmark, 36-story Michigan Avenue tower was built in 1925. Tribune Media announced in October that it had hired a company to help sell the building. Rumors had circulated that select buyers were considering tearing down non-landmarked parts of the building to make way for new Mag Mile retail space.

The sale includes a 36,000-square-foot development site located directly to the east of Tribune Tower and in front of Cityfront Plaza, the statement said, which quoted Tribune Media President Peter Liguori calling the tower 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," Liguori said in the statement. "Importantly, we're achieving prices consistent with the $1 billion valuation of our portfolio."

The statement also noted how Tribune Media has sold other properties across the country “for gross proceeds of approximately $89 million” and reached deals for the north block of the Los Angeles Times Square property and the nearby Olympic printing plant.

Image: Leandro Neumann Ciuffo via Flickr