The condo tower, which will contain 126 housing units (six units per floor) and 6,422 sf of street-level retail, is under construction. The project is about 70% complete and 66% pre-sold at an average of $631.50 per sf, according to Kennedy Wilson. Completion is slated for October.
The office building, built in 1973, has 41 floors and is currently undergoing its first renovation since 1999. The $35-million makeover will include a new lobby and entrance, upgraded common areas, and a pedestrian-friendly plaza surrounding the building. A completion date for the renovation was not readily available.
Kennedy Wilson says the office building is 58.5% leased. Approximately 85% of the building is being marketed for lease on officespace.com. Depending on the location within the building, the length of the lease and the tenant improvement package, the asking full-service lease rate ranges from $29 to $43 per sf per year. Average class A vacancy in the Downtown market is approximately 9%.
The seller is Boston-based Beacon Capital Partners' $1-billion Beacon Capital Strategic III, which acquired the asset, including the land for the condo tower, for around $101 million in late 2004 with local partner Greg Smith. The building was 70% leased at the time. Beacon acquired the building from Chicago-based Walton Street Capital LLC, which bought it out of bankruptcy in 1998 for about $61 million.
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