KBS will spend $66.4 million in renovations and improvements to the property over the next few years. Many industry analysts believe KBS made the move at the right time.
“As we see the office property development and redevelopment dynamics of downtown Chicago, it is obvious that it continues to move further west,” Robert Sevim , Studley’s executive managing director, told CPE. “Buildings like 500 West Madison are therefore going to substantiate the practicality of its location and continue to have a place on the pedestal of a ‘top downtown location,’ being able to support companies who continue to focus on accommodating the commuting preferences of their employee base, who are now relying increasingly on public transportation, whether by commuter rail or CTA.”
With the acquisition of 500 West Madison, KBS is making its second big bet in the downtown Chicago market, having acquired 300 North LaSalle in 2010 (the company sought to divest 49 percent of it last year.) It was the first noteworthy office building acquisition in downtown Chicago made post-recession and it did very well...KBS REIT III Closes Chicago’s 500 West Madison for $425M
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