SAIC to sell buildings for revenue
In order to maintain the school’s fiscal ‘challenges,’ the Art Institute’s Board of Trustees has decided to sell some of its buildings for revenue. Most of the real estate held by SAIC, which was originally purchased to expand program facilities, is now being sold to reduce the school’s debt. In the coming years, SAIC is planning to lease buildings rather than owning them.
The infamous 36 South State Street now has a buyer. The building,
which was purchased several years ago for SAIC’s Design
Program, is being sold to an unnamed purchaser. The maintenance
of the building, which was required under city ordinances,
has proved to be a financial debacle.
SAIC property between 31 and 36 South Wabash,
except the Kroch’s building, will be sold as well. The
units above the storefronts have been vacant for some time
now. The businesses which occupy the street level, including
Wendy’s, Walgreen’s, and Lane Bryant, are expected
to have their leases extended from one to two years, after
which the buildings will be sold.
847 West Jackson, housing both museum and
school operations including Gallery 2, will remain under Art
Institute ownership for at least the next two to four years.
The fate of 847 West Jackson, however, is still not completely
certain. The potential for selling the property is high –
the gentrified area is prime real estate property for rehabbed
condominiums. If a buyer does come along, the building may
be converted to condominiums. SAIC has spent at least $1 million
on renovations to the façade of the building.
The vacant street-level retail space of the Sharp building at 37 South Wabash is most probably going to be leased to the Chipotle franchise owned by the McDonald’s Corporation.