CHICAGO — Sterling Bay Cos. and International Property Developers North America (IPDNA) have formed a strategic partnership to redevelop Chicago’s historic Old Main Post Office. Located at the nexus of the Eisenhower Expressway, multiple train lines, the south branch of the Chicago River and the growing South Loop and West Loop neighborhoods, the developers’ long-term plan is to turn the site into a bustling hub of shopping, entertainment and residential activity.
“We are very excited to partner with IPDNA and serve as the development partner on such a high-profile project,” says Andy Gloor, managing principal of Sterling Bay Cos., a seasoned Chicago-based real estate investment and development company.
According to IPDNA Chairman Bill Davies, Sterling Bay was a clear choice to launch the project and make it come to fruition. “Sterling Bay has had great success transforming large, underutilized properties into highly desirable office destinations,” explains Davies. “The firm has played a significant role in transforming Chicago’s West Loop, and we feel that their knowledge of the city and current market trends will lead us to initiate the first phase of one of the most notable projects in Chicago in the last 50 years.”
Sterling Bay and IPDNA will embark on an approximately $500 million dollar first phase renovation project to convert the vacant historic structure into a high-end, mixed-use development. When complete, the redevelopment of the Old Main Post Office will boast more than 2.7 million square feet of office space and retail amenities.
“There are very few, if any, properties today [in Chicago] that can accommodate corporate users looking for large, open floor plates, and/or tech companies looking for creative, non-traditional work space,” says Gloor of Sterling Bay. “We feel we are in an excellent position to capitalize on this growing demand.”
Sterling Bay specializes in repositioning properties in emerging locations. In the last several years, Sterling Bay has breathed life into the Near West Side, redeveloping 111 North Canal Street, 400 South Jefferson Street, and 1000 West Fulton Street, giving traditional corporations and young tech companies alike new options for their business addresses.
Sterling Bay has attracted companies such as Google, Twitter, GoGo, Hillshire Brands, SAP, IDEO and Uber to its properties.
Recent History
On June 9, 2009, the United States Postal Service put the Old Main Post Office up for auction. The auction was held on Aug. 27, 2009 and conducted by Rick Levin & Associates Inc., with an opening bid of $300,000 before eventually being sold to Davies, founder of IPDNA. The purchase price exceeded $20 million, according to the Chicago Tribune.
Today’s announcement of the partnership between Sterling Bay and IPDNA follows last July’s unanimous approval of rezoning plans by the Chicago Plan Commission and the city council.
— Matt Valley