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University of Chicago Sells Harper Court for $112 Million

By Sam Cholke | July 29, 2014 12:11pm
 The University of Chicago sold the 12-story Harper Court development to Clal Insurance on Friday.
The University of Chicago sold the 12-story Harper Court development to Clal Insurance on Friday.
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DNAinfo/Sam Cholke

HYDE PARK — The University of Chicago sold the Harper Court development for $112 million, the school announced Tuesday.

Clal Insurance, an Israel-based life insurance company, closed Friday on its purchase of the 12-story office and retail complex at 53rd Street and Lake Park Avenue.

Despite the sale, the university will maintain control of all 150,000 square feet of office and 75,000 square feet of retail space. In an announcement of the sale, the university said it would hold the master lease on all spaces in the complex and sublease to tenants, including current tenants like L.A. Fitness, Native Foods and Starbucks.

The project opened Nov. 8 and is one of the largest development projects in Hyde Park in decades.

In 2008, the university through its real estate development arm, Lake Park Associates, became a partner in the project, which at the time was estimated to cost $106 million. The university initially invested $30 million in the project, including $10 million for the purchase of the property, renovation costs and other expenses. It then bought out the other partners for $98 million in November.

The university would not immediately comment on whether it lost money on the project.

The city supported the project with $20 million in tax increment financing and an agreement to sell a city parking lot to the developers for $1.

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