Class L Improves Downtown Office Buildings

Today, the 19-story, 250,000-sf building is 92% occupied, Lajka told the Commission on Chicago Landmarks, which approved final inspection for Marc Realty's building as well as 1 N. LaSalle St. and 360 N. Michigan Ave. under Cook County's Class L property tax incentive. Under the program, property owners get a reduced tax assessment if they spend at least 50% of the buildings fair market value on substantial rehabilitation that of historically and architecturally significant commercial and industrial buildings.

The improvements would have to total more than $14.4 million based on their most recent assessments. The 48-story, 527,600-sf 1 N. LaSalle St. was sold for $19.5 million in October 1998. The Cook County Assessor's office pegs the value of the 22-story, 297,500-sf 360 N. Michigan Ave., the original site of Fort Dearborn, at $7.79 million based on its most recent assessment.

City officials say the lion's share of the three rehab projects went toward interior improvements aimed at making the space more marketable to tenants. In the case of 29 E. Madison, it has helped lure jewelers relocating from Wabash Avenue, Lajka says. A large portion of the work at the Heyworth Building, which carries a $345,912 tax bill, went to upgrading building mechanicals, according to the city department of planning and development.

Approximately $8 million has been spent at 1 N. LaSalle St., city officials estimate. Work not only exceeded the original budget, they say, it will continue for five years. Bronze doors were restored, windows were repaired, lobbies were updated and masonry was cleaned and repaired. The most recent tax bill for the building redeveloped by MB Beitler was $1.03 million, the largest of the three buildings.

Likewise, more rehab work was found to be needed at 360 N. Michigan Ave. beyond cleaning the building's exterior and making repairs. The incentives will help reduce a $512,714 tax bill.