Seay & Thomas Inc., a Chicago real estate firm, was hired to sell the property. They hired an Indiana company, Kruse International, to conduct the auction. According to the prospectus sent to potential bidders, the commercial property was “ideal for redevelopment with potential for over one million square feet of development.”
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At 11:00 a.m. on November 22, 1988, 28 years to the minute after Marina City’s euphoric groundbreaking, bidders, each with a certified check for $1 million as earnest money, gathered at the Hyatt Regency Chicago hotel a few blocks away, where Marina City’s bankrupt commercial property was put on the auction block.
(Left) Hyatt Regency Chicago from the hotel’s website. |
Kruse had said the value of the commercial property could be as high as $200 million. This was much higher than what the property actually sold for, $22.7 million, equal to $59.5 million in 2024.
Matas Corporation, a north suburban office development firm, was the successful bidder. It was their first venture into downtown real estate. Their most recent development had been a $90 million office park in Deerfield, Illinois.
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Without going into details, they announced major renovation plans. “We feel the property has tremendous upside potential,” Steven G. Levin, vice president of Matas, told the Chicago Tribune. “A lot of things are beginning to happen along the Chicago River, and we’re excited that we are going to be part of it.”
(Right) Steven Levin at a real estate forum hosted by Crain’s Chicago Business on February 13, 2013. Photo by Dianne Brogan. |
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But before closing on the deal, Matas Corporation backed out, without public comment.
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