City Skyscraper Soars Over All Per-Square-Footage Price Tags

July 12, 2010

There’s a Chicago real estate deal going down that is going to set a record.

California-based KBS Realty Advisors LLC has agreed to pay $655 million for the new, riverfront office tower at 300 N. LaSalle Street in downtown Chicago.

Chicago real estate

300 N. LaSalle

At that price, the 1.3-million-square-foot skyscraper comes out to almost $503 per square foot; the highest price per square foot ever paid for an office building in our fair city.

According to Crain’s, the previous high was in 2006 when a California investor paid $422 a square foot for One South Dearborn, another Hines’ development.

The new, 60-story office tower, which is being sold by Houston-based Hines Interests LP, was completed in 2009 and is more than 90 percent occupied by tenants with long-term leases.

More than half the space — 650,000 square feet — is leased through 2029 by Kirkland & Ellis LLP, one of the largest law firms in the country.

Sounds like a good investment.

300 N. LaSalle, also known as Kirkland & Ellis Tower for obvious reasons, is set slightly off the north bank of the Chicago River and has 200 feet of riverfront property including an outdoor plaza with seating and a waterfront cafe.

It is the 14th tallest building in the city.

There’s a 225-car garage, white-tablecloth restaurant, fitness center, conference center and bank on site.

Designed by the internationally recognized architectural firm Pickard Chilton and covered in glass and stainless steel, the building is LEED certified and extremely energy efficient. It uses a river water cooling system that saves water and electricity, and it is covered by a 50 percent green roof.

KBS, which stands for Koll Bren Schreiber, is one of the nation’s largest buyers of commercial properties.

Hines will continue to manage the property after the sale is completed, which should be within the next month.

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