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KBS REIT III Acquires 500 West Madison and Names Transwestern Exclusive Leasing & Management Agent

20 Dec 2013, 10:10 pm

By Gabriel Circiog, Associate Editor

Transwestern recently announced it has been named the exclusive leasing agent and property manager for Citigroup Center. Located at 500 West Madison Street in downtown Chicago, the 1.5 million-square-foot Class A mixed-use tower was purchased by KBS Real Estate Investment Trust III for about $425 million plus closing costs.

Newport Beach, Calif.-based KBS REIT III, a public non-traded real estate investment trust has chosen Transwestern to lease and manage the 40-story skyscraper. Situated in Chicago’s West Loop, the property is currently 93 percent leased. KBS REIT III has a vast portfolio under management which currently features 135 million square feet. The company also owns another trophy-class office tower in the Chicago central business district: 300 North LaSalle, a 1.3 million-square-foot office tower.

“500 West Madison is another recent, prominent acquisition KBS REIT III has made in the office arena,” says Ken Robertson, KBS Central Regional President. “We feel the West Loop has become the epicenter of new development, adaptive re-use and urban renewal in Chicago’s CBD, and we believe this is an iconic asset that is literally connected to the transit grid of the entire region.”

Situated atop the Ogilvie Transportation Center, 500 West Madison is ideal for commuters. The LEED Gold certified building is home to important office tenants such as Citigroup Inc. and W.W. Grainger and is the headquarters for Orbitz Worldwide Inc.

Designed by Helmut Jahn and constructed in 1987, the building features 64,000 square feet of retail on the first two floors, including over 45 stores and restaurants. Office floor sizes range from 31,000 to 47,000 square feet.

“We are honored to have been chosen by KBS as the leasing and management agent for 500 West Madison,” says Michael Lirtzman, executive vice president of Transwestern. “This building’s appeal to office users will only be enhanced by the strategic improvements KBS intends to implement as it takes ownership and makes a great building even better. Chicago’s West Loop is a sought-after location, and we are thrilled to have the opportunity to offer tenants a home in this iconic building.”

The exclusive leasing agents for the property will be the Transwestern leasing team of Lirtzman and Courtney Baratz.

Photo Courtesy of: Jarred Trost via Wikimedia Commons.



Liberty Property Trust Renews Leases with Five Tenants in Recently Acquired Industrial Buildings

13 Dec 2013, 9:03 pm

By Gabriel Circiog, Associate Editor

Liberty Property Trust recently announced it has renewed leases with five tenants, totaling 277,495 square feet of industrial space.

All the tenants are located in buildings acquired when Liberty purchased a major industrial portfolio earlier this fall. As previously reported by Commercial Property Executive, Liberty Property Trust entered into a definitive agreement to acquire the operating partnership of Cabot Industrial Value Fund III in August.

“When we completed the purchase of Cabot Industrial Value Fund III in October, 3.2 million of the 23 million-square-foot portfolio was located in the greater Chicago market,” says Don Schoenheider, vice president and city manager for Liberty’s Illinois region. “This provided us with a terrific opportunity to expand our footprint. It’s been an exciting couple of months as we have gotten to know our newest tenants. Their renewals are very encouraging and we look forward to working with each for many years to come.”

Out of the five agreements the largest was with MSC Industrial Direct for 181,635 square feet in Hanover Park. The property is located close to the other two buildings Liberty purchased last month in DuPage County, 135-195 East Elk Trail and 515 Kehoe Boulevard.

“Part of our strategy has been to reach greater depth in DuPage County, as it is an excellent logistics market,” Schoenheider says. “With recent acquisitions we now have more than a dozen buildings there that broaden our property mix; a fact we see as an extremely important differentiator heading into 2014.”

The other four new leases renewed this month by Liberty include agreements with EZ Mailing Services Inc. in Bensenville; Tactical Lighting Systems in Addison; Tri-Fin LLC in Itasca, and Perfection Servo Hydraulics in Batavia.

Logo Courtesy of: www.libertyproperty.com



Zurich North America Reveals Team to Develop and Design New North American Headquarters in Schaumburg

5 Dec 2013, 12:06 am

By Gabriel Circiog, Associate Editor

Zurich North America recently announced it has entered into agreements with Clayco, Goettsch Partners and CannonDesign for the development and design of their North American headquarters in Schaumburg.

“We want our new, state-of-the-art campus in Schaumburg to be a source of pride for both the community and our employees,” says Mike Foley, CEO of Zurich North America Commercial. “We look forward to working with this elite team of designers, architects and builders who will help bring our vision to life.”

As previously reported by Commercial Property Executive, Zurich North America signed a letter of intent with Motorola Solutions in September to acquire 40 acres of land for its new world-class North American headquarters at Meacham Road and I-90. The company will relocate from its current offices on American Lane to the new headquarters by the fall of 2016.

The new 735,000-square-foot complex is designed to reinforce an image of reliability and success through its bold simplicity in form, and to underline its commitment to sustainability. The structure will be composed of three primary “bars” that are offset and stacked. The arrangement aims to open views of the surrounding landscape and optimize solar orientation for amenities while creating unique spaces that offer programmatic flexibility not found in typical office buildings. The top “bar” of the complex soars 11 stories and cantilevers toward downtown Chicago.

Clayco, as developer and design-builder will lead the development, design and construction of the complex. The headquarters’ core and shell, along with the parking facility, will be designed by Goettsch Partners. CannonDesign is designing the interior of the headquarters.

Zurich employs about 2,500 people in Schaumburg, and about 60,000 worldwide. It also has an office in downtown Chicago, which it intends to relocate within the Loop.

Zurich North America estimates the project will create up to 700 construction jobs.

Rendering Courtesy of: www.claycorp.com



Ivanhoé Cambridge Adds 1.4 MSF of Office Space to West Loop Portfolio

2 Dec 2013, 8:42 pm

By Gabriel Circiog, Associate Editor

Ivanhoé Cambridge recently announced that it has expanded its Chicago office portfolio by acquiring twin office buildings 10 and 120 South Riverside Plaza, in partnership with Callahan Capital Properties.

Located in the West Loop submarket of Chicago’s business district, the property adds 1.4 million square feet of office space to the company’s portfolio. The investment of more than $360 million in 100-percent ownership of the properties strengthens the company’s position in the West Loop.

“Chicago is one of the key U.S. cities we’ve set our sights on in order to build a solid national high-quality office building platform,” says Adam Adamakakis, executive vice president, U.S. investments, Ivanhoé Cambridge. “This successful transaction proves one more time how effective our partnership with Callahan Capital Properties can be in one of the most competitive real estate markets in the United States.”

Situated on the west bank of the Chicago River, a short distance away from the two busiest commuter rail hubs in the city’s business district, the 21-story 10 and 120 South Riverside Plaza towers have both received LEED Gold EB certification. The twin buildings occupy two full city blocks.

The new investment in Chicago comes 18 months after the real estate company announced the start of construction on the River Point Tower. Also located in the West Loop, River Point Tower is the largest property development project of the past five years in Chicago. The enthusiasm for the submarket was confirmed just days later when a major law firm was announced as an anchor-tenant, leasing over 225,000 square feet of space in the new tower.



Brennan Investment Group and DLJ Real Estate Capital Partners Announce Industrial Development Project

20 Nov 2013, 11:34 pm

By Gabriel Circiog, Associate Editor

Brennan Investment Group LLC and DLJ Real Estate Capital Partners LLC recently announced the acquisition of about 8 acres of land in Des Plaines, Ill.

Located at 1780 Birchwood Avenue, close to I-90 and I-294, the site has been purchased for a development project in Chicago’s O’Hare Industrial submarket. The partnership plans to build the Northeast O’Hare Industrial Center, a state-of-the-art warehouse and distribution building. The 140,000-square-foot building will feature a 32-foot clearance height, ample loading, trailer parking, and auto parking.

“The Chicago industrial market – one of the most diverse in the nation – has seen resurgent tenant demand evidenced by three consecutive years of positive net absorption,” says Scott McKibben, co-founder and managing principal of Brennan Investment Group. “For this development, we were particularly attracted to the market fundamentals of the O’Hare area, where vacancy has declined five full percentage points in the past two years and now stands at 8.10 percent. We are confident that with year-to-date net absorption of 1.3 million square feet, the O’Hare market is ready for development projects.”

Jonathan D. Kohn and Thomas C. Rodeno of the Colliers International team have been retained to market the property on behalf of DLJ Real Estate Capital Partners and Brennan Investment Group.

Designed to serve the increased demand for warehouse, assembly and distribution spaces, the property will be built to a LEED standard.

“The property will be attractive to future tenants due to its proximity to the interstate system and its central location, one mile from Chicago’s O’Hare International Airport,” McKibben says.

Logo Courtesy of: www.brennaninvestmentgroup.com







One Response to Chicago Archive

  1. Joselyn Overley

    Sep. 26, 2011 at 12:58 pm

    I just think it’s too hard for small businesses to try to purchase a property, renting or leasing is their only real option

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