Office N Illinois

Old Main Post Office development lands $500 million construction loan

Old Main Post Office $500 Million Funding,ph01

New York-based investment firm 601W has just acquired $500 million in financing to further the redevelopment of the Old Main Post Office. The 2.8 million-square-foot building straddling Congress Parkway has been one of the city’s key targets as they vie for Amazon’s HQ2.

The loan from JPMorgan Chase increases 601W’s total investment in the project to $800 million, including a prior round of equity financing that amounted to $250 million. The property sat fallow for years and suffered a few stalled redevelopments until 601W bought the Art Deco behemoth and started construction last year.

The Telos Group LLC, a Chicago-based real estate services firm, is handling leasing on the project. This funding boost positions the project for a planned tenant move-in of Spring 2019, according to Telos Group president Brian Whiting.

“When completed, the Post Office will reset the standard of office communities through its truly unique combination of historical elements and forward-thinking interior design,” Whiting said in a statement. “The resulting internal neighborhood that is being created will provide progressive and inspirational work environments that are key to helping its tenants attract top talent.”

Architecture firm Gensler has been tapped to draw up a vision for the building’s second life. Plans to redevelop the historic mail-sorting facility into a modern office building include high-end amenities, large floorplates, a new food hall, a tenant-accessible rooftop and a new riverwalk.