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City Paying Part of CNA's $64M Renovation

CHICAGO-The community development commission endorses $13.7 million in tax increment financing to support the seventh-largest US commercial insurance company's effort to convert its 1.1-million-sf office building at 333 S. Wabash Ave. into a multi-tenant property.

By Mark Ruda | Updated on May 10, 2005

CHICAGO-Not only will CNA Financial Corp. keep its headquarters in the East Loop, the seventh-largest US commercial insurance company also will embark on a $63.7-million redevelopment of its 1.1-million-sf office building. The decision to stay at 333 W. Wabash Ave. and redevelop space for new tenants is prompted by $13.7 million in tax increment financing, endorsed Tuesday by the community development commission.

The insurance company has occupied the entire red-coated steel 45-story building since its construction in 1972, but a restructuring of operations has reduced its space needs by 281,000 sf, says department of planning and development assistant commissioner Nori Greenstein. CNA Financial Corp. considered a sale-leaseback of the building, selling it and leasing space elsewhere, including suburban locations, adds executive vice president Tom Pontarelli. The company started out in a two-room office on Monroe Street in 1904, Pontarelli notes, but could sharply reduce costs by moving to the suburbs.

John Buck Co. has been hired as project manager for the building’s redevelopment, as well as leasing agent for the 281,000 sf. Potential tenants already have been identified, Pontarelli says, for space that could involve the fourth and fifth floors as well as seventh through 15th.

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