The 601W Cos. Secures $500M Construction Loan For Old Main Post Office Redevelopment

Old Main Post Office, Chicago
Bisnow/Chuck Sudo
The Post Office, Chicago

The $800M Old Main Post Office redevelopment, which was a pipe dream as recently as 18 months ago, gained a vote of confidence and a substantial amount of forward momentum Tuesday. The 601W Cos., the firm rebuilding what is now known simply as The Post Office, closed on a $500M construction loan from JPMorgan Chase.

The loan replaces an initial $90M loan the 601W Cos. secured from JPMorgan Chase that was part of the acquisition and stabilization of the 2.8M SF property. The 601W Cos. has raised $250M in equity since acquiring the building in May 2016.

The Telos Group President Brian Whiting, whose firm is handling leasing duties for The Post Office, said a substantial portion of the loan's proceeds would go toward further stabilization of the building, leasing costs and tenant improvement allowances. One project being funded by this loan will be the replacement of over 2,400 windows, which Whiting said should be completed in May 2018. Construction crews are also working to restore the building's facade and structure, and are bringing new electrical, vault and HVAC systems to the building. Whiting said those systems are expected to be installed and operating by the end of 2018.

Leasing for The Post Office, which is one of 10 sites submitted by the city and state for their Amazon HQ2 bid, is already underway. The repositioning has a target completion of March 2019, and Whiting said tenants could move in, if all goes according to plan, by early 2019.

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