After once looking to tear down two historic towers in Chicago’s South Loop, the federal government is now seeking real estate firms interested in redeveloping them.
The move comes after federal officials in recent years stepped up efforts to demolish the 16-story Century Building at 202 S. State St. and the 22-story Consumers Building at 220 S. State because of security concerns regarding the adjacent, Ludwig Mies van der Rohe-designed Everett M. Dirksen U.S. Courthouse.
The U.S. General Services Administration reversed course a few months ago, recommending the preservation of buildings that were constructed between 1887 and 1915 and are listed in the National Register of Historic Places.
This week, the GSA announced that it is soliciting proposals to privately finance and redevelop the property, which includes vacant land where a small building recently was demolished. JLL brokers are leading the process to obtain requests for qualifications from interested development teams.
The GSA said it will accept proposals for long-term lease redevelopments through Jan. 31, after which the federal agency will begin working toward selecting a real estate firm or team of developers.
Because of long-running concerns about the safety of federal judges and others in the courthouse, there will be tight limits on uses for redeveloped space.
“This RFQ is an excellent opportunity for a developer to make a strong impact in this iconic district of Chicago,” Robert Green, deputy regional commissioner for the GSA’s Great Lakes Region, said in a statement. “GSA is focused on providing a win-win solution for the community and the federal government.”
The two towers and smaller buildings between 202 and 220 S. State had faced bleak prospects until August, when the GSA announced they were no longer earmarked for demolition.
The Consumers Building designed by Jenny, Mundie & Jensen and the Century Building designed by Holabird & Roche were constructed in the 1910s.
Buffer zone
The federal government bought the towers and smaller structures near the courthouse to create a buffer zone after a person was charged with attempting to destroy the courthouse with a truck bomb in 2004, according to an op-ed from Democratic Illinois Sen. Dick Durbin in the Chicago Sun-Times in 2022, as government officials were accelerating efforts to tear down the long-vacant structures.
Durbin noted that “from higher floors, it is easy to see directly into the judges’ chambers and jury rooms” of the Mies-designed courthouse tower at 219 S. Dearborn St.
After a planned expansion of the courthouse never happened, then-Mayor Rahm Emanuel announced in 2017 that a group of developers had been selected to redevelop the Consumers and Century buildings into apartments and retail space.
Because the GSA is not allowed to sell properties directly to private developers without holding an auction, the city planned to buy the buildings for $10.38 million and then transfer ownership to the chosen development team.
But after the city-backed redevelopment plan was announced, judges in the Dirksen building began expressing concerns about the plan, which was to include a rooftop deck for apartment dwellers.
In 2019, then-Mayor Lori Lightfoot pulled the plug on the redevelopment plan, citing federal officials’ concerns.
Building restrictions
The buildings’ fate had remained in limbo until the GSA’s recent announcement that they would be preserved. In a redevelopment, the GSA would continue to own the buildings as part of a long-term lease agreement.
The GSA previously disclosed several restrictions for a redevelopment, including a short- or long-term residences, lodging, places of worship and medical treatment, services or research. It also will restrict rooftop access, access to outdoor areas or creating sightlines into the courthouse.
Developers also will be required to provide 24-hour security, security cameras and other safety measures, according to the previously released guidelines.
A 2022 proposal from groups including Preservation Chicago recommended using the buildings to store archives. Such a use would involve a limited number of visitors, who would be required to show identification or otherwise check in.
For the record
The request for qualifications process is being led by JLL brokers Brian Carroll and Ed Chatmon.