August 30, 2009
The former Main Post Office Building of Chicago, which has acted as a gateway to the City, sold at auction on August 27 for $40 million, which is roughly $13 a square foot.
Rick Levin & Associates Inc, the auctioneer, says that the replacement cost would be more than $300 million for the 3 million-square-foot property. The City’s downtown office space peaked around $224 a square foot in 2007, according to data from the research firm Real Capital Analytics.
Who bought? International Property Developers North America Inc. Who?! It is a mystery who the principals are. Have any knowledge on this? Lets us know, please!
Why? Much like newspaper advertising, the Postal Service is feeling the pinch from The Internet [Newspaper Ad sales plummet 29 percent…revenue down 2.8 Billion]. The Postal Service reported a net loss of $2.4 billion in the third quarter and is selling property to cut expenses. I guess people are actually using “the email” opposed to snail-mail.
In the News:
Old Chicago post office bought for $40 million: Who might that mystery buyer be? (Chicago Tribune, August 28 2009)
$40 million bid for closed Chicago post office (Forbes, August 28 2009)
Chicago Capone-Era Post Office Sold for $40 Million (Bloomberg, August 27 2009)