The Dirt Lawyer's Blog Archive

Or so says Crain's . Even though I'm not in the story (big deal), it is very cool to see your friends, your clients and your office building in the news. And I am inclined to agree. Even my little space that I hardly use, while not as dramatic as Structured Development or Wight & Company, has a great big window, exposed brick, and all the modern trappings. Yes, it is the building on this page on the left. And I like it.

The owners of the Inland Steel Building, including Frank Gehry , are going to pump $40 million or so into their acquisition, which is almost as much as they paid for the building. The upgrades, according to Alby Gallun , consist of restoration work, upgrading the mechanicals , redoing the bathrooms and adding an environmentally sustainable roof to help get a LEED certification. Yes, roughly 40% of the money is expected to come from government sources, such as a TIF and landmark tax credits. (These deals can be winners, obviously. And I find the landmark work fun on the legal side.) Altruism aside, there's also a practical reason for these upgrades: over 60% of the building (for which they paid $246.50/sf and now will go out of pocket roughly another $100/sf or so) is vacant or will be coming up for lease in the next year. That could be good if there's one big big big tenant that wants that space, which is the owner's goal. And a landmark building with naming rights c...

I've always been intrigued by Chicago's Marina City , the corncob-looking twin towers at State Street and the Chicago River designed by Bertrand Goldberg and built in 1964. As a purist, I did not like it when Smith and Wollensky came to town and put a New York style facade on the ground floor. I just hated the look. Now I hear that Dick's Last Resort (which I like, by the way) wants to move there too and add outdoor seating and, well, its unique brand of service to the mix. Come on, people. Landmark this iconic building already. And put Dick's where it belongs, more north in River North or keep it near Navy Pier. Also see Pulitzer Prize winner Blair Kamin's blog for more.

If you look to the left, you will see a picture of the Chicago & North Western Railway Powerhouse, the location of my Chicago office. I was pleased to see that the Powerhouse won a Chicago Landmark Award for Preservation Excellence. Here's a link to a recent photo of the exterior renovation. Congrats to my friends and clients and landlords at Structured Development !

And, preservation guy that I am, I think that is a good thing in this case. As you may know, Fifield Cos. was about to close on the acquisition of the Lakeshore Athletic Club when new Alderman Brendan Reilly stepped in and said, " Not so fast, my friend! " The latest rather unsurprising news is that, based on the aldermanic opposition, Northwestern University is going to talk to developers interested in preserving the building. Of course with debt costs higher now than before they may or may not be able to come close to Fifield's $40+ million purchase price. And because of debt market changes, will Fifield eventually ask NU for a haircut (translation: purchase price reduction) if they do proceed to closing? Fifield appears to be saying no.

It is no secret that I love seeing old buildings restored. You just have to look at the picture of my office on the left to confirm it. So I was happy to hear that Prime Group has not only refinanced the Roanoke Building at 11 S. LaSalle Street, a building that I've visited more than once in my day, but also that they are planning to restore the building, apply for landmark status (and the tax breaks that go with it) and even make operational a bell tower that I honestly did not know about.