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City Opts to Pay $18M for River North Building

CHICAGO-Buying the 113,036-sf office building at 400-40 W. Superior St. as well as a 7,735-sf garage at 366-70 W. Superior St. will pay for itself in five years, city officials say, because renewing the lease could cost $3.1 million to $3.6 million a year.

By Mark Ruda | Updated on September 30, 2005

CHICAGO-Owning is a better option than renting for several city departments. The city is buying two River North buildings it now leases for its administrative law operations and department of general services for nearly $18 million.

Superior and Sedgwick Associates, which will sell 366-70 W. Superior St. and 400-40 W. Superior St. for $149 per sf, was leasing the buildings totaling 120,771 sf for $15.96 per sf on a net basis. The city was paying $4.93 per sf to the owners for property taxes, according to the department of general services. If the city renewed its lease, it expected to pay $21 per sf to $25 per sf, or as much as $3.6 million a year, city officials say, paying as much in rent over five years as it will cost to buy the buildings now.

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