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