Two North LaSalle was constructed in 1979 and renovated in 1999. The building is currently 99% leased. Tenants include Neal, Gerber & Eisenberg LLP, Computershare, the Hartford Insurance Fire Co., Harris Associates and Levenfeld Pearlstein. "The building is fully leased with long-term leases so it fits in our portfolio as one of our more stable assets," says Richard Litton Jr., president of Harbor. More than $2 million will be spent on renovations to the building, such as work on the elevators and facade work.

Harbor purchased the property because it is trying to strengthen its Chicago presence and because of the buildings location, Litton says. "We have been watching the Chicago office market for a number of years," he says. "We wanted to wait until we thought that the market was starting to show real tangible signs of improvement in terms of falling vacancies and rising rents." Litton tells GlobeSt.com that the building's location in the heart of the Central Business District and the "proximity to the governmental hub" made the building extremely appealing.

Last September, Harbor Group entered the Chicago market with the purchase of the 512,354-sf 300 S. Wacker Dr., and followed it with the purchase of the Burnham Center, at 111 W. Washington St. The purchase of Two North LaSalle "is the largest transaction we have done in our history," he says. "It evidences our continuing ability to do larger and larger transactions, and we plan to continue to be active in this market and other markets in the country," he says. Harbor Group has an investment portfolio of more than $1.7 billion, with more than six million sf of office space and more than 10,000 apartment units.