Gothic Tribune Tower Could Transform Into Mixed-Use, Hotel Space

If an ongoing eight-month deal finally closes, Chicago's landmark Tribune Tower could evolve into a hub comprising a hotel, residential units and retail space.

Los Angeles-based company, CIM Group, is inching closer to buying the 36-story Michigan Avenue tower, according to Chicago Real Estate Daily. The publication cites an undisclosed source "familiar with the deal" in tagging the pending purchase at around $250 million.

The plan came to light in October when Tribune Media announced it had hired a company to help sell the building, which is prominently located at 435 N. Michigan Ave.

"The slow-moving deal has been complicated because potential buyers have been considering a variety of redevelopment options, which could include converting the existing office tower to a hotel," the Chicago Real Estate Daily story says." They also have been trying to gauge how large a new building the city is likely to allow to be constructed on a parking lot east of the Gothic tower, which affects the value of the overall site."

Rumors have circulated that select buyers are considering tearing down non-landmarked parts of the building to make way for new Mag Mile retail space.

Although Chicago Real Estate Daily indicates that CIM's official plans remain unknown, it provides more background about the under way deal.

Accompanying photo courtesy of Flickr.