Seven months after announcing that it wanted to sell its headquarters building, the City Colleges of Chicago has picked a buyer. The 14-story office building at 226 West Jackson Boulevard will go to Zidan Management Group for $34.5 million. It was one of 14 bids received for the mid-rise, designed by Frost and Granger, and completed in 1904.
The Indianapolis apartment management company plans to add the building to its portfolio of 5,000 apartments in the Midwest. It has two other buildings in Chicago.
The sale is a cost-saving measure by City Colleges. The headquarters building is more than half empty, and most of the administration will be stationed at various college campuses around the city. Those that remain downtown will decamp for an office building at 180 North Wabash, across the street from Harold Washington College.
More details in the press release below.
City Colleges of Chicago Board of Trustees Votes to Authorize Sale of Headquarters Building
All City Colleges Staff Will Work at a College or in the Immediate Proximity By Summer
Chicago, IL – The City Colleges of Chicago Board of Trustees voted today to authorize the sale of the CCC downtown headquarters building at 226 W. Jackson. The offer of $34.5 million from Zidan Management Group was the highest among 14 offers received during a public bidding process. City Colleges of Chicago plans to relocate the majority of its administrative office staff to its colleges.
“The sale of City Colleges headquarters brings our staff closer to the students, faculty and other staff they serve and helps ensure we make efficient use of taxpayer dollars,” said Chancellor Juan Salgado. “We are pleased with the offer and look forward to the opportunity it presents to rebuild our capital reserves and make future investments that enhance our students’ experience.”
CCC Chancellor Juan Salgado announced the proposed sale of the District’s headquarters building earlier this summer in a move intended to right size operations and shift more resources to its colleges located in Chicago neighborhoods. Moving administrative staff to CCC campuses around the city aligns with the Chancellor’s strategy to shift greater focus to the system’s seven colleges and five satellite sites while shoring up the district’s long-term financial health.
Two hundred City Colleges administrative staff will move to one of its college locations, with most going to Kennedy-King College in Englewood and Dawson Technical Institute in Bronzeville. Staff will also relocate to Truman College in Uptown, Malcolm X College on the Near West Side, and a smaller downtown office space at 180 N. Wabash, across from Harold Washington College.
City Colleges aims to close on the downtown headquarters building with Zidan Management Group by the end of its FY18 fiscal year this spring. The buyer, Indianapolis-based Zidan Management Group, intends to develop the building for use as multi-family apartments. The offer of $34.5 million equates to $146.85/gross square foot. No zoning, financial or environmental contingencies were included in the offer.
The Group has two other projects in Chicago: the completed rehab of Somerset Place Apartments, 5009 N. Sheridan Road, in the Uptown neighborhood, and Shoreline Apartments, 2231 E. 67th Street, in the South Shore neighborhood.
City Colleges of Chicago enlisted the services of a team led by Martin Stern of CBRE, Inc. to market and advise it on the sale of the property.
The 185,000-square foot classically-styled office building located at 226 W. Jackson just east of the Willis Tower, sits on 17,400 square feet at the Northeast corner of Jackson and Franklin and is zoned by the City of Chicago as “Downtown Core 16.”