Old Main Post Office sold to original winner

By Andrew Schroedter, Oct. 21, 2009

(Crain's) — English developer Bill Davies has completed his acquisition of Chicago’s Old Main Post Office, roughly two months after he agreed to pay $40 million for the property at auction.

Sources say Mr. Davies renegotiated a lower price for the nearly 3-million-square-foot structure that straddles Congress Parkway downtown at 433 W. Van Buren St. But that new amount could not be determined.

The deal closed today.

“We are excited that this historic landmark now enters the redevelopment phase, and we look forward to seeing it contribute to the growth and vitality of downtown Chicago after many years of vacancy,” Tom Samra, the Postal Service's vice-president of facilities, said in a statement. "We wish the new owners of this property the best of luck in their efforts."

Mr. Davies was supposed to close the transaction on Oct. 10 but his firm, International Property Developers North America Inc., and the postal service were unable to reach an agreement on issues regarding the property’s eventual redevelopment.

A message left for Mr. Davies at the Ritz Carlton Chicago, where he is a guest, was not returned. His spokesman declined to comment.

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Kevin V. wrote:

Big building, lots of potential for adaptive use.

10/21/2009 3:41:23 PM

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Mark T. D. wrote:

more retail space is good

10/21/2009 4:30:52 PM

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James L. wrote:

Given that this went into a post-auction renegotiation, I'm concerned that not much will happen to the building for a very long time. I hope it doesn't turn into another Michigan Central Station like in Detroit.

10/21/2009 5:38:15 PM

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Mare D. wrote:

So let me get this straight. This guy refuses to pay the $40 million he bid. The second highest bid according to the Chicago Sun Times was $39,5 million yet he gets it for $17 million...if anything ever needed to be investigated, it's this bid. I'd be shocked if the people who bid anything over what he got the building for don't sue him and the post office.

10/22/2009 3:19:13 PM

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