Bays Brings Two Rialto Square Building Back To Life

JOLIET, IL — What a difference a year makes. In 2018, flooding from broken water pipes in July and August destroyed several offices,ruined floors, ceiling tiles, supplies and furniture inside the six-story Two Rialto Square Building. The professional office building just north of Joliet's historic Rialto Square Theatre was in pathetic shape. Rialto's board put the property up for sale. By December, a buyer emerged. It was John Bays, the city's most prolific commercial investor.

Eleven months later, the Two Rialto Square building at 116 N. Chicago St. isn't in sorry shape. It's in great shape. In October, Bays attracted a big-name tenant. The Will County Regional Office of Education, led by Regional Superintendent Shawn Walsh, moved in from New Lenox.

A total of 16 educational employees now occupy about 5,400-square-feet of space on the building's fourth floor. Walsh's staff services about 100 walk-in customers weekly and another 500 to 600 customers over the phone. "Downtown Joliet was near county government and the price was right," the regional superintendent told Joliet Patch last week.

Blacha Law Office from Chicago also opened an office on the third floor. It's now one of a handful of law firms scattered throughout the building. DMT Insurance Service Inc. is occupying space on the third floor as well.

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This month, Joliet Patch contacted Bays for a tour of his building. He obliged, showing off the interior renovations and the work that's still ahead during the first part of 2020.

Last December, Bays acquired the property for $350,000, plus a $100,000 donation to the Rialto as part of the agreement, he explained. He estimated he's spent about $1.8 million so far on his renovation efforts. Bays Investments has already installed two new elevators, several new bathrooms and replaced all the windows. Bays converted the century-old building from electric to gas heat. He also put in a new sprinkler system.

Out of all the buildings on the real estate market in Joliet last year, why did Bays set his sights on acquiring the rundown Two Rialto Square Building?

"I only buy failed things," Bays said. "It's a turnaround. It's just about making a winner out of loser.

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Short-term, Bays said he needs to get the main-floor renovations complete. That means making a decision on whether to open a sports bar or a fine-dining restaurant here.

A restaurant, he said, could compliment the recent success of the Rialto Square Theatre. On the other hand, Bays said, "the food has to be really to get people on the west side of Joliet. It's got to be really good to bring them downtown. A sports bar or fine-dining, I got both (already interested). I just have to make sure the person's really solid."

Bays said he would like to decide on picking a restaurant or sports bar tenant by the end of the year, and hopefully have place open next spring or summer.

He said the idea of having a sports bar offering live entertainment several days a week is tempting.

"People will come downtown, but you have got to make it worth their while to come," Bays said, pointing to the night-time success of the Rialto, The Forge live music venue at Cass and Chicago Streets as well as MyGrain Brewing Company and the nearby Chicago Street Pub.

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For the time being, Bays is holding off additional renovations to the fifth and sixth floors. He wants to get the rest of building's four levels occupied first. He said the building is perfectly suited for more law firms, insurance companies, title companies and other professions.

Bays said he could put about 28 apartments or condominiums on the fifth and sixth floors. If he went with a hotel, he could put about 40 total rooms on floors five and six, he said.

"I just need to see if I got enough people looking for office," Bays said. "I'm going to make this building a beautiful building for the downtown. It's going to be the nicest building in downtown, next to the new courthouse."

Bays told Joliet Patch he has no second thoughts about buying Two Rialto Square Building last December, in spite of knowing huge renovations were necessary.

"I'm a fixer-upper," Bays said. "I like to rebuild. It needed everything, heating and cooling, elevators, it needed a gut, a total gut, but this building, I tell you, it's got good bones."