CITY of chicago TO SELL FOUR EMPLOYEE PARKING LOTS FOR more than $12 MILLION
Sale Brings Additional $4 Million in Revenue, Helping to Close the 2016 Operating Budget Gap
Mayor Rahm Emanuel announced today that the City plans to sell four River North parking facilities owned by the City of Chicago, managed by the Department of Fleet and Facility Management and used as employee parking for the Central Administrative Hearings facility at 400 W. Superior Street for more than $12 million. The parcels appraised at a value of $7.48 million. Once the sale is finalized in 2016, the additional $4 million that the City receives will be used to help close the 2016 operating budget gap.
“We are leaving no stone unturned when eliminating waste and streamlining city government for the 2016 budget, and these sales are part of strategic efforts by the City to maximize our real estate assets on behalf of taxpayers,” Mayor Emanuel said. “These sales remove high valued properties from the City’s books and provide needed revenue for 2016 operations.”
The final proposed sale prices, totaling $12,399,000, were negotiated through a public, two-phase bidding process throughout the summer, 60 percent more than the appraised value. The City had previously assumed an appraised value of $7 million with revenue from that amount to be used for the 2016 operating budget.
The properties were acquired by the City between 1997 and 2005 and total approximately 27,000 square feet. Last year, the Inspector General’s office recommended that the City ensure it is periodically evaluating the real property used for City operations to determine if it is being used for the best possible purpose, or should be sold to generate revenue for taxpayers.
The properties being sold include:
| Location | Size (Sq. Ft.) | Buyer | Appraised Value | Sale Price |
| 366 W. Superior St.
|
7,735
|
360-366 Superior LLC*
|
$2,120,000
|
$3,775,000
|
| 365 W. Huron St.
|
8,350
|
Morningside Huron LLC
|
$2,340,000
|
$3,739,000
|
| 356 W. Erie St.
|
5,000
|
356-366 Erie LLC*
|
$1,350,000
|
$2,230,594
|
| 366 W. Erie St.
|
5,950
|
356-366 Erie LLC*
|
$1,670,000
|
$2,654,406
|
*Belgravia Group
The Chicago Plan Commission is scheduled to vote on the sales at its September 17 meeting. If approved, the sales could be introduced to City Council on September 24, 2015.
“River North is one of the most successful, vibrant mixed use communities in the city. Timing could not be better for us to revisit the city’s real estate inventory, return these valuable River North parcels back to the tax rolls and continue the meteoric growth of this world class neighborhood,” said 42nd Ward Alderman Brendan Reilly.
The sales are being brokered by CBRE, which has marketed the properties on behalf of the City’s Department of Planning and Development since spring 2015. Once the sales are final, CBRE will receive a 3.75 percent commission.
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