KBS REIT III Leases Chicago Building to a Travel Tech and Life Insurance Co
500 West Madison in Chicago, a property owned by non-traded REIT KBS Real Estate Investment Trust III (KBS REIT III), is now home to Amadeus North America, Inc., a travel technology company and VALIC, a life insurance company. The two companies are leasing a combined total of 10,931 square-feet.
KBS REIT III purchased the 40-story, 1.46 million square-foot office tower in December 2013 for a purchase price of $425 million plus closing costs. Situated above Ogilvie Transportation Center in Chicago’s West Loop, the Class A building is LEED Gold-certified and has twice been named Building of the Year by the Building Owner and Managers Association.
500 West Madison’s first two levels contain 64,289 square-feet of retail space occupied by 45 stores and restaurants, while the second level provides direct access to city trains, buses, and expressways through the Ogilvie Transportation Center.
The property, built in 1987, will undergo a major capital improvement program during the fourth quarter.
“We really work hard on the KBS experience for our tenants,” said KBS Senior VP Brett Merz.
Renovations will include new restaurants, re-painted building and train station atrium, a new 3rd floor office lobby, a fully renovated food court, and upgraded common area corridors and restrooms as well as a brand new tenant lounge, conference center, and an 11,000 square-foot, two-story fitness center with a half-court basketball court.
Michael Lirtzman of Transwestern, who represented KBS REIT III in the lease said, “It’s a huge project that we believe will really transform the building.”
“We are pleased to welcome Amadeus and VALIC to this iconic property in the heart of Chicago,” added Merz. “The property location, amenities, history, design and upcoming renovations are attributes we hope will continue to attract other world-class companies.”