Chicago Daily News Building Listed Amid Sam Zell’s Liquidation

The former Chicago Daily News Building downtown has hit the market amid liquidation of assets tied to the property’s late owner, real estate billionaire Sam Zell.

Zell’s firm, Equity Group Investments, has tapped Bryan Rosenberg and David Caprile of Eastdil Secured to find a buyer for the 26-story office building at 2 North Riverside Plaza, CoStar reported.

Riverside Plaza, a landmark of Chicago’s riverfront since its completion in 1929, is expected to attract interest for its historic value and development potential. The listing is part of the ongoing liquidation of Zell’s personal real estate portfolio following his death in May of last year.

This move is part of a broader effort that includes the recent listing of the Cobbler Square Lofts in Old Town, another Chicago property previously owned by Zell.

Another Chicago-based firm formerly led by Zell, Equity Commonwealth, is liquidating and shutting down, at the request of shareholders. It recently listed two Austin office properties.

The historic Riverside Plaza building is 54 percent leased, and its largest tenant is Equity Residential, a real estate investment trust previously led by Zell. The asking price hasn’t been disclosed, but Real Estate Alert estimated the sale could approach the value of a $65 million loan issued on the property in 2016.

Originally designed by architects Holabird & Root, the art deco structure served as the Chicago Daily News headquarters until the newspaper closed in 1978. It was the first office tower in Chicago to be built using air rights over train tracks and incorporating a public plaza, concepts that influenced subsequent developments in the city.

Zell acquired the property in the 1970s and moved Equity Group Investments’ headquarters into the building in 1982. Known for his unconventional approach to real estate, Zell made several modifications to the property, including commissioning a riverfront terrace that served as a personal retreat and meeting space.

Over the years, the real estate titan considered significant redevelopments, such as adding a residential or office tower to the plaza or even demolishing the structure, but those plans were shelved due to economic downturns and opposition from preservationists.

— Andrew Terrell

Editor’s note: This story was updated to correct the formerly Zell-led entity that is liquidating assets and shutting down at the request of shareholders.