Deal paves way for unprecedented redevelopment of Chicago’s Old Main Post Office
After a saga dating back more than two decades, Mayor Rahm Emanuel announced this month that 601W Cos. has finalized its purchase of the Old Post Office, setting the stage for a massive $500 million office rehabilitation project downtown.
The plan comes less than three months after the Mayor issued a Requests for Proposals (RFP) for a new developer, following five years of inaction and three years worth of building code violations from the previous owner.
The scope of 601W’s plan for the Post Office is unprecedented in recent Chicago history. The developer aims to lease out more than 2.5 million square feet, which would make this the city’s most expansive office project since the Aon Center, which opened in 1974 with 3.6 million square feet of office space. It’s of comparable size to the Chase Tower, which opened in 1969 with 2.2 million square feet.
And the 250,000 square foot floor-plate is practically unheard of in an office building, with the closest rival being the Merchandise Mart at 210,000 square feet.
New York-based 601W has shown it can succeed with projects of this size. Its portfolio includes the Aon Center, Prudential Plaza, and the old Montgomery Ward complex at 600 W. Chicago Ave. The firm hopes to begin pre-leasing in 2017, with a target completion of 2020.
Plans for the new office space include a rooftop deck with a running track and ample green space, as well as a complete renovation of the Post Office’s historic lobby.
When fully leased, more than 10,000 people could work in the building, and the rehab work alone should create more than 1,000 jobs.
