An apartment building with a malevolent intelligence in the basement. It includes a rhyme - "I chased A bug around a tree, I'll have his blood, he knows I will"

I had the book around about 1972, it had a black and white patterned dustjacket.

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I haven't found the story in question. It's a fairly common schoolyard rhyme. Unless this is you, someone else is also seeking this. Closest match I've found is ''Tommy Remembered'' which references the line, but that's almost certainly not the right story as what I've read of it makes it out to be a completely mundane slice-of-life story.

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