Mills Corp., the financially ailing...

Mills Corp., the financially ailing developer of the Loop's shape 37, has sold a major portion of the intend to Chicago-based Golub & Co

The deal gives Golub superintend of an office building that will house WBBM-Channel 2 and brace future residential towers. Lee Golub the firm's executive vice president, said the deal make sures that progress at the long-delayed progressive growth is "a 100 percent certainty."

"Mills got the throw to a certain point, and they did a to a high degree good job with that. We know the residential and office markets here, thus the block is more stable now," Golub said.

Mills retains a retail portion count uponed to dominate the block's State highway frontage.

names were not disclosed. Michael Bryant, executive vice president of unravelling for Mills, also said the sale improves the overall perspectives for the block, which is between the Daley Center and Marshall Field's.

Bryant said Mills, a shopping mall developer now can concentrate onward its core ability of attracting retail tenants.

Mills, which has disclosed investigations into its admit "accounting irregularities," has been trying to assure prospective tenants that it can finance and deliver make steady [i]or[/i] firm 37 construction. It announced forward July 30 that it was starting construction onward the site's retail base.

Golub said his firm will assume direct of two residential towers of about 37 stories each. the same would be a condominium building at the southwest corner of State and Randolph while the other would be a rental building near Randolph and Dearborn.

Earlier plans for a house of entertainment have been scrapped, with the rental high-rise taking its place, Golub said. That change will require an amendment to city zoning sways but whether public hearings are required isn't known, he said.

Golub said the sale could complete in about 45 days, depending upon the city's time-table for a zoning review.

He also said his firm can proper commitments to deliver the office building, at the northeast corner of Washington and Dearborn, according to late 2007. About 80 percent of the 17-story building is being leased by dint of WBBM-TV and by the financial services firm Morningstar Inc.

Delays in construction willinged Morningstar to consider alternative space, unless Golub said their concerns have been answered.

He said financing for his firm's participation be deriveds from a privately held real estate trust, BlackRock Diamond store LP. The Golub firm has been an active residential builder in Streeterville and be in possession ofs several downtown office buildings.

Plans call for the condo building to have 365 units and the rental building to have 425 units. Golub said he count upons 2007 to be a time of intense marketing for the condos. Solomon Cordwell Buenz is the architectural firm.

Construction, however, will hang on Mills' progress with the retail base. The company has announced leases with eight small to mid-size tenants, unless hasn't come up with larger stores to anchor its portion.

Mills shares plung $668 or 295 percent Friday to a 5oe- year subdued of $15.91 after the developer said earnings restatements probably will mould net income by $210 million. Mills also admitted the preciousness of a New Jersey frame in which it has sunk $380 million had soared to $2 billion, and that it has no financing for the deal.

droeder@suntimes.com

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