The Crusader Newspaper Group

Negotiations begin on sale of the James R. Thompson Center

On December 15, 2021, Governor JB Pritzker announced the selection of a proposer for the sale of the James R. Thompson Center (JRTC). After a competitive Request for Proposal (RFP) process to select a purchaser for the JRTC, the State plans to enter into exclusive negotiations with JRTC Holdings, LLC for the purposes of acquiring and redeveloping the site located at 100 West Randolph Street.

Following the evaluation of submitted proposals, the State elected to move forward with a public-private partnership structure, which includes:

• An up-front payment of $70 million to the State for the purchase of the property

• The selected purchaser preserving and substantially renovating the JRTC

• The State purchasing and occupying approximately 425,000 sq ft of newly renovated, Class-A office space at the JRTC

• The State will save approximately $20 million a year for the next 30 years through operating cost reductions and lease consolidations alone.

• The redevelopment of the JRTC is expected to result in thousands of new construction jobs, new tax revenues for Cook County, the City of Chicago, and its sister agencies, while maintaining thousands of jobs and operations with heavy public interactions in the LaSalle Street corridor

“Today I’m proud to announce that for the first time, we’re taking a massive step forward with a plan that will result in the sale of the Thompson Center and that will save taxpayers $800 million,” said Governor JB Pritzker. “I came into office with a promise to manage state government resources more efficiently and to support local governments. By returning vital real estate in downtown Chicago to private ownership, tens of millions in revenue will be generated for Chicago Public Schools and for property taxpayers. This is a new era of responsible governance for Illinois – one that protects our taxpayers and fosters the jobs and opportunities that working families deserve.”

CMS has been strategically preparing for the sale by planning practical relocation options for State tenants based on public interactions and operational needs of respective agencies, ensuring that the results of the extensive real estate and financial analyses yield the best value to the taxpayers of Illinois.

On May 3, 2021, CMS issued the RFP for the Sale of the JRTC. Two proposals were received by the deadline of October 8, 2021. CMS evaluated the technical proposals, interviewed the proposers, and requested a Best and Final Offer by December 8, 2021. Based on these evaluations, CMS determined that the proposal submitted by JRTC Holdings, LLC provided the best long-term value to the State and its taxpayers.

JRTC Holdings, LLC is owned and controlled by Michael W. Reschke. Since 1982, Mr. Reschke has served as Chairman, Chief Executive Officer or Managing Partner of various affiliated entities that developed over $12 billion of real estate projects across the United States.

As part of its due diligence efforts, CMS met with over 50 State agencies that occupy space in downtown Chicago, both at the JRTC and other leased office space, representing over 2,800 employees located in downtown Chicago. CMS worked to better understand these agencies’ physical space needs, public interactions, operational missions, and geographic location requirements and align their future office space in a manner consistent with CMS’ new space standards, made effective on September 1, 2020, and better reflect current national best practices. Through this lens, CMS determined that the State’s real estate footprint in most cases could be reduced by 20-40 percent.

In January 2021, CMS acquired 555 West Monroe building for $72.25 million as part of its effort to optimize the State’s real estate portfolio. By April 2022, approximately 1,500 State employees will be relocated to 555 West Monroe.

As a next step, CMS will enter into an exclusive negotiation with JRTC Holdings, LLC and commence negotiation and finalization of the Purchase Sales Agreement with an anticipated execution by March 2022, ahead of the legislative deadline outlined in SB 886 (Public Act 100- 1184). The closing on the property is anticipated in the Summer of 2022.

Recent News

Scroll to Top