CHICAGO-A $25 million improvement project to Union Station in the downtown, designed to bring back some luster and office tenants to the 87-year-old property, has been completed. Mortenson Construction, hired by Amtrak, upgraded and replaced systems that will allow the historic Great Hall and the eight-story office headhouse to gain air conditioning and modern safety features.
Amtrak owns the station, designed by famous architect Daniel Burnham and opened in 1925. Federal funds were used for the upgrades, which were project managed by Jones Lang LaSalle.
The Great Hall, barely used today by the mostly commuter train customers, lost air conditioning decades ago. Designs for expanding the vacant eight-story headhouse have been through a number of development announcements, but these plans have never materialized.
Mortenson upgraded or replaced the building’s mechanical, electrical and plumbing systems while installing fire safety equipment, including sprinklers and fire alarms to help make the station compliant with city regulations. Most of the work was done in the sub-basement, with the installation of five industrial boilers and two 600-ton chillers. Utility costs are expected to drop by $2 million per year.
The Great Hall, which during World War II saw more than 100,000 train travelers per day, should get heavy use again, according to Greg Werner, VP and head of the local Mortenson office. He tells GlobeSt.com that the Beaux-Arts style Great Hall is now holding special events that are expected to bring in another $2 million annually.
To generate more revenue, JLL is working as property manager for the offices above the station. Amtrak is moving local employees into the second and third floors of the headhouse, and the rest will be marketed. “What was previously un-rentable space because of life-safety issues and inadequate ventilation systems has become prime real estate,” said Ray Lang, president of the Amtrak-owned Chicago Union Station Co. and the railroad’s chief of state government relations.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
