In brief: 300 N. LaSalle | Data center land | Klutznick
KBS closes on 300 N. LaSalle
A real estate investment trust backed by KBS Realty Advisors LLC has closed Thursday on its $655-million purchase of 300 N. La Salle St. from Hines Interests L.P. At about $503 per square foot, the price is the highest ever paid for a downtown office building and one of the largest sales in the country this year, according to New York research firm Real Capital Analytics Inc. The deal was partially financed by a $350-million loan from MetLife Inc. The 60-story building, completed last year, is anchored by Chicago law firm Kirkland & Ellis LLP, which leases 53% of the tower. Related story: Buyer confirms deal for 300 N. LaSalle
Data center firm buys Northlake site
A venture of data center developer Ascent Corp. paid $11.5 million for a 20-acre industrial site in Northlake, property records show, where the St. Louis firm plans a new, multi-tenant data center. The property is east of the massive Microsoft Corp. data center that Ascent recently helped develop. The seller of Ascent's new site, at 505 N. Railroad Ave., was CenterPoint Properties. Ascent announced plans for the project in spring 2009 and had hoped to break ground last fall. But the firm recently secured the necessary funding to close on the purchase, according to NAI Hiffman, which represented Oak Brook-based CenterPoint. Calls to Ascent late Thursday weren't returned. Related story: New data center planned for suburbs
Ariz. jury hits Klutznick Co. affiliate with $110-million verdict
A jury in Arizona has delivered a $110.7-million verdict against an affiliate of the Klutznick Co. over a development dispute in northeast Phoenix. The Maricopa County jury ruled Tuesday that a Klutznick entity that serves as master developer of the 5,700-acre Desert Ridge project improperly interfered with Phoenix-based Gray Development Group's plan to build on a 41-acre parcel within the development. The verdict comes about six months after a lender filed to foreclose on CityNorth, a mixed-use project across the street from the Gray property that was developed by a venture including Chicago-based Klutznick. Ed Aro, a lawyer for Klutznick, says he's “obviously disappointed” by the verdict. “We're talking about what options are available to us, including an appeal,” he says.
Union votes to OK strike
Unionized employees at four area hotels owned by Hyatt Hotels Corp. voted overwhelmingly Thursday to allow the union's bargaining group to call a strike. Unite Here Local 1 said in a news release that 92% of those voting approved calling a strike, if necessary. “We are disappointed to hear about the strike vote,” a Hyatt spokeswoman said in an e-mailed statement. “We are committed to keeping our employees working and believe that the most productive place to address workplace matters is at the negotiating table.” Last week, union activists staged a sit-in protest outside the Hyatt Regency Chicago as part of a 15-city demonstration against the hotel chain. Some 6,500 employees at the Hyatt Regency Chicago, Park Hyatt, Hyatt McCormick Place, and Hyatt O'Hare have been working without a contract since August 2009. Related story: Union protests Hyatt hotels, July 22
Local foreclosure activity up 23% in first half
Foreclosure-related filings in the Chicago area rose 22.7% in the first six months of 2010 from the year-earlier period, vs. 8.3% for the country overall, according to Irvine, Calif.-based RealtyTrac Inc. The Chicago area had the 37th-highest foreclosure rate out of 206 U.S. metropolitan areas, with one in 48 homes receiving a foreclosure filing. Las Vegas had the highest rate, with one in 15 housing units receiving a filing.
