CHICAGO-KBS Real Estate Investment Trust II, based in Newport Beach, CA, has bought the new, 60-story 300 N. LaSalle building here for $655 million, one of the largest commercial real estate transactions in the country this year and the biggest in the city for at least five years. Hines Interests, the developer of the building, was the seller, but will remain the manager of the property.
The 1.3-million-square-foot tower was completed in spring 2009, one of the last office buildings completed in the Chicago following the economic downturn. The building has enjoyed premium status during two years of dropping vacancy downtown, with very little new space on the drawing board.
Law firm Kirkland Ellis 53% of the space in the building, occupying about 687,857 square feet at $36.95 per square foot for 10 years. The entire tower is 93% leased, and includes 23 other tenants such as Boston Consulting Group, GTCR Golder Rauner LLC, Aviva and Quarles & Brady LLP. The average lease is $35.97 per square foot, for an average of almost 16 years.
The acquisition was funded with proceeds from a mortgage loan, proceeds from existing credit facilities from unaffiliated lenders and proceeds from the company’s ongoing initial public offering, according to a KBS filing. On Thursday, the REIT entered into a five-year mortgage loan with MetLife Inc. for $350 million, secured by the tower.
This purchase increases the trust’s acquisitions to about $3.5 million square feet for the year, including properties in Dallas, St. Louis, San Diego, Portland, OR and the Washington, DC area. This Chicago tower is one of the highest-quality properties in the country, said Rodney Richerson, president of KBS Realty Advisor’s central region. “With its strong tenant credit and long-term leases, (the property) fits perfectly within our investment parameters to provide long-term cash-flow stability,” he said in a statement.
The building is certified LEED Gold. Amenities include a conference center overlooking the Chicago River, a fitness center, a premium steakhouse, riverfront caf
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
