Help wanted: Developer needed to buy $25M property, build tower

Maria Magnus has a pitch for would-be developers in the South Loop

Chicago /
Apr.April 30, 2020 11:01 AM
601 S. Lasalle Street (Credit: Google Maps)

601 S. Lasalle Street (Credit: Google Maps)

Real estate investor Maria Magnus has got a deal for you: For the low, low price of $25 million, you can scoop up a four-story parking garage in the South Loop and an adjacent office building at 601 S. Lasalle Street.

Magnus is eyeing developers who would demolish the two structures and build a 330-foot-tall building on the site, according to Crain’s. Under current zoning, a 337,000-square-foot tower could be built on the property, either as an office or apartments.

Magnus acquired the parking garage — and four others — out of bankruptcy court in 2017 following landlord Arthur Holmer’s legal issues, which included a 2015 fraud conviction. Magnus’ group paid $41 million for the five parcels, and she already owned the 73,000-square-foot office building at 601 S. Lasalle, according to Crain’s.

It will be a tough sell in this climate. With a lot of capital on the sidelines, most active buyers are opportunistic and many sellers would rather try to hold on until absolutely needed. Should a buyer emerge, they’d also have to obtain a construction loan, which is nowhere near a sure bet. [Crain’s] — James Kleimann


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