The Real Deal Chicago

Walgreens to anchor 601W’s renovated Old Main Post Office

The pharmacy chain is close to signing a lease for 200K sf in the 2.5M-sf complex
June 15, 2018 10:20AM

The Old Main Post Office (Credit: daryl_mitchell on Flickr)

601W Companies is close to signing Walgreens as its first major tenant in the overhauled 2.8 million-square-foot Old Main Post Office set to open next year.

Parent company Walgreen Boots Alliance is close to inking a lease for 200,000 square feet of space inside the gargantuan 105-year-old office complex, according to the Chicago Tribune. The property straddles the beginning of the I-290 expressway just west of the Chicago River south branch.

Walgreens is expected to maintain its headquarters in suburban Deerfield, despite the added downtown space.

601W bought the complex for $130 million in May 2016, days after the death of then-property owner Bill Davies. The company’s $800 million overhaul includes adding a green roof and replacing 2,200 windows.

Last December, 601W refinanced the renovation with a $350 million boost from JPMorgan, representing one of the heftiest loans recorded in the Chicago market in 2017.

And earlier this month, 601W refinanced the 83-story Aon Center, which company principals Mark Karasick and Victor Gerstein bought in 2015, with a $678 million loan from JPMorgan and Brookfield Asset Management. [Chicago Tribune]Alex Nitkin