[sirkingwilliam]

CPS Energy is close to relocating to RiverNorth in a swap that could lead to multi-family high rise.

CPS Energy has received a proposal that — if eventually approved by its board of trustees — would land the utility in a new home downtown and put its current Navarro Street headquarters and nearby properties in private hands.

The deal would free up prime real estate along the River Walk for redevelopment.

Lewis declined to disclose which CPS properties were part of the proposed swap. And she would neither identify the partnership that submitted the proposal nor a provide a timeline for the deal.

But five sources with knowledge of the proposal said the utility would move into two towers at 500 and 530 McCullough Avenue, space that AT&T Inc. vacated early last year. The properties are assessed at a combined $21 million.

Plans for the CPS property would include transforming the office space into apartments, sources said.

But others say the property could become a mixed-use development similar to the Pearl Brewery.

“In my opinion, the highest and best use would be a multifamily site,” said Larry Mendez, a senior vice president at Transwestern, a commercial real estate firm. However, he added: “That would make a freaking fantastic hotel, mixed-use site, literally half a block off the river.

“I do believe its prime for apartments with retail and (could include) some office. That's what the new wave (of development) that's coming will look like.”

Mendez said he didn't know the details of the proposal, but he was aware a deal is percolating.

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