CHICAGO—Officials from CIM Group and Golub & Co. said earlier today that they have completed their acquisition of the iconic Tribune Tower on Michigan Ave., along with a 36,000 square foot development site located directly to the east. The acquisition was first announced by CIM and the Tribune Media Co. on August 26.

A spokesperson tells GlobeSt.com that $205 million was paid in cash at closing and an additional payment of up to $35 million will be made contingent upon the satisfaction of certain conditions.

“Tribune Tower is a signature asset for the community and for CIM Group,” says Avi Shemesh, co-founder and principal, CIM Group. “We take our responsibility as stewards of this landmark building very seriously, and will develop a plan for the property that respects the history of the tower and maintains its prominence as a part of the overall project.”

The city has zoned the property, which includes the 35-story, 740,000-square-foot Tribune Tower and a surface parking lot, for a mix of uses that includes office, hotel, residential and retail. CIM says it will explore various options and collaborate with Alderman Brendan Reilly and community members in creating a viable plan.

“Tribune Tower is not only a Chicago icon, it also carries enormous potential as a well-located real estate investment,” says Michael Newman, president and chief executive officer of Golub. “In our decades of ownership along the Magnificent Mile, this is one of the most historically important opportunities we've seen. We're happy to be a part of a team that will bring this important piece of Chicago's history into the 21^st Century using a thoughtful and creative approach to the property and the adjoining site.”

CIM in particular has lately shown a lot of confidence in the downtown market. In August, the company acquired 1326 S. Michigan Ave. and development air rights from adjacent properties in the South Loop. CIM is co-developer for the assemblage which is entitled for the development of a 46-story, 500-unit apartment tower. And in June, the company purchased a 1.04 million-square-foot, 39-story office building at 440 S. LaSalle.

A spokesperson tells GlobeSt.com that $205 million was paid in cash at closing and an additional payment of up to $35 million will be made contingent upon the satisfaction of certain conditions.

Instant Insights /

CIM Group and Golub Complete Tribune Buy

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