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PROPOSED MISCELLANEOUS ITEM OF BUSINESS
Department: Department of Real Estate Management
Summary: The Department of Real Estate Management is requesting approval of a proposed Purchase and Sale agreement for the purchase of the property located at 605 S. Wolcott Avenue, Chicago, Illinois. The property is currently the subject of a ninety-nine (99) year ground lease between Cook County and CHDG Phase 1A1 (Office) Owner LLC.
The developer has improved the land, with the construction of a seven (7) story office building, of which CCH presently occupies approximately 71,055 rentable square feet. CCH has three (3) years remaining on its current lease term and has three (3) ten-year renewal options.
The proposed purchase is rationalized by: (1.) CCH's intent to occupy the space, indefinitely; (2.) its plan to consolidate operations, which will reduce operating expenses; (3) the County will no longer be required to pay property taxes; (4) the buy versus lease analysis saves the County approximately $18 million over the next thirteen (13) years, and, finally, the proposed transaction will terminate the existing ground lease, resulting in County's full ownership of the property.
Negotiations are ongoing and all final costs will be added to this item via amendment before the Asset Management Committee considers its approval.
Total purchase price: TBD
Average annual NOI: TBD
NPV of cash flow: TBD
Fiscal Impact: TBD
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