103-year-old Chicago Building to Be Renovated; O’Hare Extension Could Stop

By Veronica Grecu, Associate Editor A vacant West Loop office building located at 564 W. Randolph St. was sold by an affiliate of W. P. Carey & Co. LLC to Chicago developer Sterling Bay Cos. for $4.7 million or $51 per [...]

A vacant West Loop office building located at 564 W. Randolph St. was sold by an affiliate of W. P. Carey & Co. LLC to Chicago developer Sterling Bay Cos. for $4.7 million or $51 per square foot. As reported by ChicagoRealEstateDaily.com, the 103-year-old, 93,788-square-foot property will be fully renovated so that it can accommodate new tenants by the end of the year. The renovation plans include a complete redesign of the lobby area, modern elevators, updated building systems and, according to CEO Scott Goodman, a rooftop deck that would allow the tenants from the upper floors to share outdoor space. With downtown Chicago office vacancy rate at low levels for the past four quarters, Sterling Bay will not face major challenges in finding tenants for the renovated building.

In other real estate development news, the Chicago Tribune informs that the expansion of O’Hare International Airport could be put on hold if Congress fails to extend the Federal Aviation Administration (FAA) operating authority. Although the construction works on the airport’s expansion are not currently affected as funds have already been granted, the building of a new runway on the south airfield—meant to increase capacity and reduce flight delays—could be stopped if the situation is not solved. Eve Rodriguez, spokeswoman for the Chicago Department of Aviation, mentioned however that the shortfall could be covered by alternative funding resources such as passenger ticket taxes and bonds. The FAA–Congress dispute is also critical for the Chicago-based Boeing’s plans to begin service of its 747-8 this fall. The dispute is also expected to impact thousands of construction workers, who could lose their construction jobs, as well as other airports and the communities they serve.