CHCAGO | Thompson Center redevelopment | Jahn's MASTERPIECE will be saved!!!!!!!!!!!

[west-town-brad]

Originally Posted by left of center

Anyone know if Google will be consolidating all their offices at the Thompson Center, or if they plan on keeping their Fulton Market campus? Considering their exponential growth in the city, I think they might need to retain both for the number of workers they currently have and plan on growing to.

google says it's an expansion vs consolidation

[galleyfox]

Originally Posted by west-town-brad

great news on google.

but what happened to the other guy who was going to buy and renovate? did he just get booted?

It’s the same person.

Instead of renovating for the State of Illinois and doing a partial buyback, they’ll be renovating for Google.

You can just imagine how quickly the State of Illinois bailed on their agreement. They now don’t have to buy back diddly squat. Just move into one of the other nice, regular Loop offices.

Google shakes up not only the Loop, but also one of the biggest downtown real estate deals in the past decade. Michael Reschke’s JRTC Holdings previously struck a deal with the state to buy the Thompson Center for $70 million and overhaul the dilapidated, Helmut Jahn-designed building with modern features and amenities, sell a portion back to the State for its offices and market roughly two-thirds of the building to new office, retail and other users.

Under the new plan, Reschke's venture will pay $105 million for 100% of the Thompson Center, which it would renovate and ultimately sell to Google. Reschke said today that he has reached an agreement with Google to renovate the property for the company.

[left of center]

Originally Posted by twister244

Is it possible Google maintains a small public area for folks to enjoy? One can hope.

At the very least I would imagine they would keep the food court open to the public, if only to allow those businesses to survive. I don't see them fully closing off the lobby to the public. Perhaps some agreement has been worked out with this deal in order to cement public access?

[ardecila]

They have to preserve some public access because of the CTA station and pedway, this is baked into the deal. I assume they will upscale the food court like the new food hall in the Old Post Office.

[Vlajos]

Absolutely fantastic news all around. The state gets out of maintaining a building it obviously can't, gets cash out of it, a new office for its Chicago based workforce on LaSalle which needs rejuvenation AND Google is expanding in the Loop. All arranged by Michael Reschke, a Chicago based developer that will make a good chunk of cash out of the deal.

[r18tdi]

Originally Posted by left of center

This is an interesting tidbit. How did 115 S LaSalle get involved in this deal? Was this property owned by Google or Reschke? I assume the state will assume ownership of this building and not lease their offices in there. Either way, consolidating offices all in one location would be a good thing for the state, both from a financial as well as operations perspective.

115 South was the former BMO hq, if I recall correctly. It was mostly vacant on was listed for sale early this year. Not sure if the state is buying the building outright or just leasing offices there.

[twister244]

Originally Posted by ardecila

They have to preserve some public access because of the CTA station and pedway, this is baked into the deal. I assume they will upscale the food court like the new food hall in the Old Post Office.

If it ends up being anything like the Post Office food court, then I am 1000% on board with that. For reference, here's a local Eater article showcasing the Post Office food court, which was done really really nicely.

https://chicago.eater.com/2022/7/21/...s-16-on-center

[galleyfox]

Originally Posted by r18tdi

115 South was the former BMO hq, if I recall correctly. It was mostly vacant on was listed for sale early this year. Not sure if the state is buying the building outright or just leasing offices there.

The State is purchasing the building outright. They’re doing a deed transfer.

Thompson Center = 115 S LaSalle + $30 million

The $105 million purchase price includes $30 million the state will receive in cash, with the rest coming via title to the office building at 115 S. LaSalle St., which the both parties agreed is worth $75 million, according to a news release from the State. Reschke is under contract to purchase that building—which BMO Harris Bank is vacating as part of a relocation to a new tower next to Union Station—and the state will ultimately own and occupy it.

Reschke's venture will renovate 115 S. LaSalle St. for the State's offices after BMO vacates the building, with renovation work expected to take 18 months, the State said in the news release. Reschke will own adjacent buildings to the east of the tower with the shared address of 111 W. Monroe St.

[Kngkyle]

An all-around huge win for the City, State, Google, developer, and taxpayers.

[lakeshoredrive]

I can't wait to see how this area will be "revitalized" with Google at the Thompson Center. It will be fun to watch. Hopefully good stuff! And hopefully the renovation will be in line with Google's aesthetic. Will the building's name be changed to something like Google Center? And maybe at the Clark/Lake subway station, it might get a face uplift and have Google advertising similar to North/Clybourn Station for Apple.

[ardecila]

Originally Posted by twister244

If it ends up being anything like the Post Office food court, then I am 1000% on board with that. For reference, here's a local Eater article showcasing the Post Office food court, which was done really really nicely.

https://chicago.eater.com/2022/7/21/...s-16-on-center

The OPO food hall is very nice, but any upscaling of the JRTC food court will mean the loss of many affordable lunch options. Not every downtown worker has a Sweetgreen budget, and downtown should have options for the many lower-income families and individuals in Chicago. I work near Revival and even I can't really afford to eat there, except once in awhile as a rare treat.

[i_am_hydrogen]

Gov. J.B. Pritzker confirms Google will be new occupant of iconic, controversial James R. Thompson Center
https://www.chicagotribune.com/polit...qne-story.html

[Chisouthside]

Originally Posted by ardecila

The OPO food hall is very nice, but any upscaling of the JRTC food court will mean the loss of many affordable lunch options. Not every downtown worker has a Sweetgreen budget, and downtown should have options for the many lower-income families and individuals in Chicago. I work near Revival and even I can't really afford to eat there, except once in awhile as a rare treat.

I hope they keep Pinkys, the beef/gyro spot in the food court.

[Klippenstein]

I know I'm random and this is a tangent, but would it be possible to connect 115 S. Lasalle to the pedway at some point? Is there a reason why the Chase building was never connected under Madison? Would this type of connection compromise the foundation enough that it would require massive construction to reengineer/redistribute load? Just curious if anybody has any insight?

[r18tdi]

True. Google could be playing a long game. Remember that the site has been rezoned back to DX-16 and the existing building has no protections.
They're still putting $100+ million into the reno, which is something (but I guess not much for them).

[west-town-brad]

Originally Posted by aaron38

I have no love for Google and I don't trust them.

kinda odd to love or trust any company

[galleyfox]

Originally Posted by ardecila

The OPO food hall is very nice, but any upscaling of the JRTC food court will mean the loss of many affordable lunch options. Not every downtown worker has a Sweetgreen budget, and downtown should have options for the many lower-income families and individuals in Chicago. I work near Revival and even I can't really afford to eat there, except once in awhile as a rare treat.

I kind of feel like the affordable lunch option will sort itself out?

I simply just can’t get worked up about the Thompson Center fast food venues when the retail areas on nearby blocks are suffering from vacancies.



Also, the old Harris Bank building would probably be a good candidate for some ground floor retail conversion.

[left of center]

Originally Posted by aaron38

I have no love for Google and I don't trust them. Remember when Motorola Mobility spun off, and was then bought by Google? They moved to the Merch Mart and everyone was so excited? Then Google strip mined all the patents and left the dead hulk behind. They still haven't explained why they weren't allowed to do phone hardware in house, then came out with Pixel a couple years later.

Don't get your hopes up. 50/50 chance this is a flip job.

We'll have to wait and see I suppose. But considering how much they have invested in Fulton Market, I don't think their need for more office space is a farce.

[galleyfox]

Originally Posted by aaron38

I have no love for Google and I don't trust them. Remember when Motorola Mobility spun off, and was then bought by Google? They moved to the Merch Mart and everyone was so excited? Then Google strip mined all the patents and left the dead hulk behind. They still haven't explained why they weren't allowed to do phone hardware in house, then came out with Pixel a couple years later.

Don't get your hopes up. 50/50 chance this is a flip job.

Oh well? If Google is so confident about the Loop that a Thompson Center flip looks like a profitable venture, then I’m not complaining.

The Thompson Center is a building, not a company, so renovation and flipping is its future no matter what. At least it’s not the albatross around the neck of the state of Illinois anymore.

[Tom In Chicago]

Originally Posted by aaron38

I have no love for Google and I don't trust them. Remember when Motorola Mobility spun off, and was then bought by Google? They moved to the Merch Mart and everyone was so excited? Then Google strip mined all the patents and left the dead hulk behind. They still haven't explained why they weren't allowed to do phone hardware in house, then came out with Pixel a couple years later.

Don't get your hopes up. 50/50 chance this is a flip job.

I have a good friend who has worked for Mobility for over 20 years. . . when Google sold to Lenovo he and much of the engineering folks moved to Google. . . a not so insignificant part of the development for the Pixel is here in Chicago. . .

. . .