California REIT Closes On Largest Recorded Single-Building Office Sale in Chicago History
KBS Real Estate Investment Trust II (KBS), a public, non-traded real estate investment trust headquartered in Newport Beach, CA, sold the 300 N. LaSalle building in downtown Chicago to fellow Newport Beach firm The Irvine Co. for $850 million, or approximately $652 per square foot.
The deal registers as the largest single-building office sale in the history of Chicago and the third largest in the U.S. this year, following the sale of Five Times Square in New York for $1.5 billion and the Time Warner Center, also in New York, for $1.31 billion, according to CoStar information.
Constructed in 2009, 300 N. LaSalle is a 1.3 million-square-foot, 60-story office high-rise located on the north bank of the Chicago River in the city's central business district. The property features 25,000-square-foot floor plates, a three-story lobby featuring natural stones, wood and stainless steel, a conference center and UV emitters, HEPA filtration and outdoor air mixing to improve indoor air quality. Tenants also have access to a landscaped riverfront plaza, fitness center and waterfront cafe with outdoor dining. The ground floor is partially leased to Chicago Cut Steakhouse, an acclaimed steakhouse overlooking the river.
The Irvine Co. acquired the 5-Star, LEED Platinum-certified building by way of an aggressive bidding process overseen by Jeff Bramson, Mark Katz and Jaime Fink of HFF.
"In 300 N. LaSalle, the Irvine Co. saw an irreplaceable, nationally iconic property in a highly coveted Chicago location," said KBS Central Region President Ken Robertson. "The asset has performed extremely well, which only underscores its enduring quality. We believe this is undoubtedly the trophy office asset of this market and a signature property for any office investor."
KBS acquired the property back in 2010 from Houston-based Hines for $655 million.
Please see CoStar Comp #3063784 for more information on the transaction.