Plan would gut large part of old post office
REDEVELOPMENT | Reconfigured building to hold residences, offices, hotel, parking
April 20, 2007
BY DAVID ROEDER [email protected]
Described by a member of the Chicago Plan Commission as an "old elephant of a site," the former Chicago Post Office at 401 W. Van Buren is due to slim down for a better chance of survival in the jungle of commercial real estate.
Just don't expect anything to happen soon on the hulking old building, which spans the Eisenhower Expy.
The commission Thursday approved a redevelopment plan advanced by Walton Street Capital. It would reconfigure the building into four main uses: 300 residences, a 240-room hotel, 455,000 square feet of offices and parking for 400 cars.
To achieve that, more than one-third of the 2.5-million-square-foot building would be removed. The section to be taken out involves a large part of the building's midsection, although three or four floors still would cross the expressway.
The span would be for the hotel, while the building's north and south towers would be designated for office and residences, respectively.
Walton Street has had a long-term contract to purchase the building from the federal government. The post office moved out of what used to be the largest mailing center in the country in 1996, and it has been vacant since.
Raphael Dawson, a partner at Walton Street, said the building's vast space and poor floor alignments between its additions make it unsuitable for most users without a downsizing. He said he and his partners over the last eight years have considered more than 50 potential uses, from a water park and auto dealer mall to a mausoleum.
But he said it could be a couple of years before Chicagoans, especially commuters on the Eisenhower, see anything different in the building. The initial work, expected to start soon after city approvals are final, involves asbestos removal and other safety-related issues.
Dawson said that in a few months, he expects internal demolition to start. Progress beyond that will be dictated by market demand, as Walton Street has no customers lined up for the space.
"This is not pie in the sky," Dawson said. "We've come too far. The residential works. The hotel works. The exact timing will change."
Still to be negotiated with the city is a subsidy deal under the tax-increment financing program. Dawson would not issue cost estimates for the project.