Major Downtown Peoria building sold to local developer with plan for offices, residences

Downtown Peoria's PNC Bank Building is being sold.

Cullinan Properties told the Journal Star the company is purchasing the 250,000-square-foot building at 301 SW Adams Street and its adjoining 350-car parking deck. No sale price was immediately disclosed.

The PNC Bank, which occupies the first floor of the building, and CliftonLarsonAllen, which occupies the top floor, are expected to remain in the building. The remaining nine floors will be redeveloped into offices and luxury residential units, according to Cullinan Properties.

"Cullinan Properties is honored to be a part of the iconic and historic building, which originally opened as the Commercial National Bank of Peoria in 1926," Michael Gold, president of Cullinan Properties, said in a statement.

However, Cullinan Properties noted that unless there is a partnership on the project with the city and regional officials "in coming weeks" that redevelopment of the PNC Building "will not be possible."

City councilmember Chuck Grayeb, whose 2nd District includes downtown, said he would like to see the city and Cullinan Properties come to a redevelopment agreement, adding that negotiations were still ongoing.

City Manager Patrick Urich said discussions with Cullinan Properties were "very preliminary" at this stage but also added the city was excited that a local developer was purchasing the building.

He said the city has "powerful" economic redevelopment tools at their disposal they can offer for projects like this one.

"What we have discussed is sitting down with Cullinan's development team, the city's economic development team and really looking at exploring all of the available incentives that city can offer legally," Urich said. "Obviously it's TIF, it's River's Edge Redevelopment Zone, historic tax credits, could be new market tax credits depending on the nature of the development ... really exploring what we can do with a property that size and looking at the options for that for viable redevelopment strategies."

Cullinan Properties, which was founded by Diane Cullinan Oberhelman, is also responsible for Peoria developments such as Weaver Ridge Golf Course, One Technology Plaza, Grand Prairie Apartments, the Shoppes at Grand Prairie, the Levee District and Knoxville Pointe Apartments as well as developments elsewhere in the region and across the country.

"I am very pleased our company is committed to the Peoria region and Illinois, while we have expanded successfully throughout the country," Cullinan Oberhelman said in a statement.

Grayeb said the property being sold to a local developer like Cullinan increases city confidence in the project.

"I've been around a long time and I have watched developers do their thing in Peoria, but we know that Diane isn't going anywhere," Grayeb said. "She has her roots here in the Peoria area, she's done magnificent projects all over the country, so it has to be a very happy day because we know whatever she does will be a No. 1."

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