CHICAGO—Officials from KBS Real Estate Investment TrustII said yesterday that they had closed on the sale, firstannounced in May, of the 300 N. LaSalle building to the NewportBeach, CA-based Irvine Company for $850 million,the most ever paid for a Chicago office building. The deal was alsothe third-largest office building transaction in the US this year,according to CoStar. KBS paid $655 million for the60-story, 1.3-million-square-foot tower on the Chicago River backin 2010.
“In 2010, KBS REIT II saw a unique opportunity in 300 N. LaSalleduring uncertain economic times,” said chief executive officerCharles J. Schreiber in a prepared statement. “Wedeveloped and implemented a strategy over a 4-year period andultimately exceeded our business plan on behalf of KBS REIT IIinvestors.”
KBS officials also said they could not comment further.According to a document filed with the US Securities andExchange Commission, KBS “repaid the entire $344.6 millionprincipal balance and all other sums due under a mortgage loansecured by the 300 N. LaSalle Building, including a prepaymentpenalty of $13.7 million.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
