On November 3, 1988, it was announced that the commercial property – everything except the residential towers – would be sold at an auction later in the month. This included the 19-story parking ramp at the base of each tower, the commercial block below the ramps that consisted mostly of Marina City Restaurant, the marina below that, the office building that was only 15 percent occupied, and the vacant theater building.
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.”
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.
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.
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.”
But before closing on the deal, Matas Corporation backed out, without public comment.