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GlobeSt.com UPDATE: Subsidies Paying Nearly 50% of Mittal Steel's HQ Deal

CHICAGO-Mittal Steel USA's 10-year lease at 1 S. Dearborn St. totals about $12 million, with another $6.5 million in tenant improvements needed for the 53,400 sf on the 18th and 19th floors of Hines Interest's latest Downtown project.

By Mark Ruda | Updated on November 12, 2005

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CHICAGO-Half of Mittal Steel USA’s 10-year lease at 1 S. Dearborn St. is being subsidized by city and state money, according to a tax increment financing plan endorsed recently by Chicago’s community development commission. The city is paying $2 million in tax increment financing toward Mittal Steel USA’s $6.5 million in tenant improvements to 53,400 sf on the 18th and 19th floors of the building, which Hines Interests hopes to open later this year.

The 10-year lease calls for net lease payments starting at $20 per sf and escalating to $25.60 per sf, with the first year abated. The rent payments under the initial term, which begins in February, would total $12 million.

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