Sterling Bay is selling the historic River North building home to the new Tao Chicago nightclub and restaurant.
The Chicago-based developer hired Baum Realty Group to market the 34,000-square-foot property at 632 North Dearborn Street, according to Crain’s. Sterling Bay bought the 126-year-old building in 2014 for $11.5 million from the operator of Castle, according to Cook County property records.
Sterling Bay’s hospitality offshoot Four Corners and Madison Square Garden-owned Tao Group spent $25 million renovating the building before the new club and eatery opened in September.
Tao Chicago has a 20-year triple-net lease on the building that comes with “substantial rent increases” throughout the term, according to a marketing flyer for the property. The property benefits from a Class L property tax status as a refurbished Chicago landmark, the flyer said.