Irving Co’s Donald Bren and 300 N. LaSalle Street in Chicago (Loopnet, Donald Bren)
Irvine Co. is putting one of Chicago’s most prolific office towers through a $30 million makeover, a bet that a new look will attract replacement tenants as it faces big exits of existing ones.
The California-based landlord has major renovation plans in store for 300 North LaSalle Street as the building’s two largest tenants, Kirkland & Ellis and Boston Consulting Group, prepare to vacate, CoStar reported. The two tenants alone accounted for roughly 60 percent of the building’s 1.3 million square feet.
Irvine’s commitment to renovate the 14-year-old tower will push its investment on the property to nearly $900 million, as it spent $850 million to buy it in 2014. Even as it has remained one of Chicago’s most desirable office properties, Irvine has faced stiff competition from newly built towers before and amid the pandemic, a factor that has motivated other landlords to pour cash into big office upgrades of amenities and retail spaces.
The renovation plan may work to solidify a 150,000-square-foot deal that Irvine was recently rumored to be negotiating with law firm Winston & Strawn to backfill much of the space Boston Consulting is leaving behind in the building on a new lease.
Owners of office buildings like Chicago’s Aon Center and Willis Tower have also invested heavily in upgrades in recent years to help maintain tenants and lure new ones. In 2021, New York-based AmTrust Realty announced it would invest $100 million upgrading much of its seven-building portfolio in Chicago. And Tishman Speyer recently revealed a $15 million renovation plan for its West Loop tower at 525 West Monroe Street.
Irvine’s renovations will include a 4,500-square-foot expansion of the Chicago Cut steakhouse on its ground floor, upgraded fitness center, new conference center and a new bar area with a lounge overlooking the Chicago River. The three-story lobby will also be upgraded to include more furniture and greater aesthetic appeal, such as oak and stone panels.
“This major reinvestment will further elevate and transform the building for the future of work,” Irvine’s Jonathan Brinsden said in a statement.
In addition to Chicago Cut, which extended its lease by 10 years, a sizable office tenant is staying put at 300 North LaSalle. Private equity firm GTCR has extended their lease by five years and will be adding about 11,000 square feet to their office space, boosting its total to 86,000.
— Quinn Donoghue
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Irvine Co. is putting one of Chicago’s most prolific office towers through a $30 million makeover, a bet that a new look will attract replacement tenants as it faces big exits of existing ones. The California-based landlord has major renovation plans in store for 300 North LaSalle Street as the building’s two largest tenants, Kirkland
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Lead by real estate veteran Robert Khodadadian, Skyline Properties has been instrumental in many multi-million dollar commercial developments, including a $12 million contract for the White House Hotel, a 99-year ground lease of a four-story commercial site in Harlem, and a retail co-op on Prince St. for $50 million.
Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.