KBS REIT II Sells Chicago Office Building to Irvine Co. for $850M
- Jul 08, 2014
In what CoStar called the largest single-building office transaction in Chicago history, KBS REIT II has sold 300 N. LaSalle to the Irvine Co. for $850 million.
KBS REIT II bought the 60-story, 1.3 million-square-foot office tower on the Chicago River in 2010 for $648.3 million, making it the most successful transaction in KBS history, according to a KBS spokesperson. In turn, the sale to Irvine Co. is also the third largest office building transaction in the nation this year, according to CoStar. About half of the tower is occupied by law firm Kirkland & Ellis L.L., according to a Law360 article.
“In 300 N. La Salle, the Irvine Co. saw an irreplacable, nationally iconic property in a highly coveted Chicago location, ” said KBS Central Region President Ken Robertson in a news release. “The asset has performed extremely well, which only underscores its enduring quality. ”
California-based real estate developer Irvine Co. bought 300 N. LaSalle on Friday through a competitive bidding process overseen by HFF, according to the news release.
Some of the amenities at the property include Chicago Cut Steakhouse, as well as a waterfront cafe and a riverfront plaza. Built in 2009 by Houston-based developer Hines Interests L.P., which sold it to KBS a year later, according to Law360, 300 N. LaSalle is located in the heart of Chicago’s CBD in River North, the city’s innovation center and place for dining, shopping and culture.
“In 2010, KBS REIT saw a unique opportunity in 300 N. LaSalle during uncertain economic times,” said KBS REIT II CEO Charles Schreiber in the release. “We developed and implemented a strategy over a four-year period and ultimately exceeded our business plan on behalf of KBS REIT II investors. We are very pleased with this transaction for our investors.”
KBS Capital Advisors is KBS REIT II’s external advisor and is an affiliate of KBS Realty Advisors, a private equity real estate company and SEC-registered investment adviser founded by Peter Bren and Charles Schreiber in 1992. Since its inception, KBS and its affiliated companies have completed transactional activity of more than $30 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and five non-traded REITs.