Tribune Media will sell its iconic Tribune Tower to the Los Angeles-based real estate developer CIM Group, the company announced on Tuesday.
CIM has agreed to pay up to $240 million for the Chicago building, with $205 million at closing and an additional $35 million contingent upon unspecified conditions. The deal is expected to close at the end of September.
The sale follows Tribune’s announcement in October that it planned to sell the building. Earlier this year, the company sold the north block of the Los Angeles Times Square property and the nearby Olympic printing plant, both in Los Angeles.
“Tribune Tower has been a unique part of Chicago’s skyline since the 1920s,” said Peter Liguori, Tribune Media’s President and CEO. “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,” he continued. “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 Avi Shemesh, co-founder and principal of CIM Group. “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.”