About 275,000 sf, or 25% of the eight-story building that formerly was used by R.R. Donnelly Co. as a printing plant, remains as vacant shell space. Meanwhile, occupancy in the redeveloped portion of the building is 96%, which allows Digital Realty Trust to envision a first-year capitalization rate of 9% on its first acquisition in the Chicago market.

The Commission on Chicago Landmarks began efforts in 2003 to apply a designation to the 93-year-old Lakeside Technology Center, which according to property records was sold for $22 million in 1999. A Cook County Class L property tax break would result in a lower rate, as would a Class 6(b) exemption.

"Lakeside Technology Center is one of the premier Internet gateways in the region and fits extremely well with our current asset base and business strategy," says Digital Realty Trust chief executive officer Michael Foust. "Our acquisition of Lakeside Technology Center will provide us with a fantastic opportunity to provide space to leading technology and corporate data center tenants who require the mission critical infrastructure necessary to operate their businesses without interruption."

Digital Realty Trust put down $500,000 earnest money on the property and has until April 13 to do its due diligence. If it backs out of the deal before then, it forfeits $250,000.