Cook County Weighs Buying Out Two Harrison Square Ground Leases
Two Cook County Board items would buy out ground leases on a 7-story office and a daycare on the Medical District campus. Both are held in committee.
Illustration- Source Briefing
- Public record
Cook County’s real estate department has asked the Board of Commissioners to approve buying out two ground leases on the Medical District campus, a seven-story office building at 605 S. Wolcott Avenue and a daycare at 1851 W. Harrison Street. Neither purchase price is public yet, and both items remain held or deferred in committee.
Why it matters
The County owns the land under both buildings and leases it to CHDG Phase 1A1 entities on 99-year ground leases. On the office item, record 26-2626, the Department of Real Estate Management says Cook County Health already occupies about 71,055 rentable square feet, has three years left on its lease and holds three ten-year renewal options. The department argues that buying would end the ground lease, remove the property tax bill and save the County roughly $18 million over 13 years versus leasing. That savings figure is the County’s own estimate, not an independent one.
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The daycare item, 26-2625, is the more unusual of the two. The record states that the bank is insisting the developer sell its leasehold interest to offset an outstanding loan balance. In other words, a lender-driven sale of the leasehold is the trigger, and the County is positioned as the buyer.
The numbers
Total purchase price, average annual net operating income, NPV of cash flow and fiscal impact are all listed as TBD on both items. The records say negotiations are ongoing and final costs will be added by amendment before the Asset Management Committee votes. For the daycare, the department expects the asset to generate more than double the revenue of the current land lease. The records do not name the lender or give the loan balance. Cook County Health lists 605 S. Wolcott as its Harrison Square location.
What’s next
The full Board referred item 26-2626 to the Asset Management Committee on Oct. 22, and the Legistar status for both is held or deferred in committee. Until an amendment adds a price, nothing is approved. Watch for that amendment: it will show what a ground-lease buyout costs when the lender, not the landowner, forces the timing. More local coverage is on the Chicago market page.
On the record
Cook County Board records 26-2625 and 26-2626 show the County would end two 99-year ground leases held by CHDG Phase 1A1 entities, with price terms still listed as TBD and both items held or deferred in the Asset Management Committee.
Public record · cook-county.legistar.com
Primary record
- Cook County Board of Commissioners (Legistar)26-2625: Purchase and Sale Agreement (1851 W. Harrison)
- Cook County HealthHarrison Square location page