CHICAGO-Vacant for three years, a former Toys 'R' Us store at 10 S. State St. will be redeveloped into multi-tenant retail space, with Urban Outfitters and Office Depot already signing letters of interest for 68% of the space. JDI Realty's $20.5-million project will get up to $2.5 million from the city in tax increment financing, according to a recommendation Tuesday by the community development commission.
Locally based JDI Realty, LLC will buy out an $8.5-million ground lease from State and Madison, LLC which otherwise would have little motivation but to collect rent from Toys 'R' Us for another 14 years, says department of planning and development assistant commissioner Nori Greenstein. "The complex ownership structure has prevented redevelopment," she adds.
While Urban Outfitters will take space on the first and second floors of the two-story building just south of the city's landmark intersection, Office Depot is taking space in the basement and first floor. JDI Realty will "use best efforts to lease to unique tenants" for the remaining 17,000 sf, says Greenstein, who have one or no stores in the city. However, the department has some flexibility on that requirement if the right tenant is found, she adds. "The goal is to have this site developed and occupied."
The redevelopment is being designed by renowned Chicago architect Lucien LaGrange, who designed the 54,500-sf building for Toys 'R' Us in 1995. While it will continue to fit into the rest of State Street, windows will be enlarged and new entrances will be created. In addition, the building will have a "green roof" over 75% of its ceiling.
Private Bank has indicated interest in financing the project, Greenstein adds.
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