CHICAGO—KBS Real Estate Investment Trust III bought 500 W. Madison in December 2013 for about $425 million and began making plans to lease up the property and refurbish the amenities that serve both tenants and the many commuters that pass through each day.
As reported in GlobeSt.com, throughout 2014 the company signed a slew of new leases, totaling about 145,000 square feet, bringing occupancy up to about 95%. And the $11.5 million renovation and upgrade plan for the property includes a $3.8 million reinvestment into the dining court, now called Marketplace@500.
CBRE was hired to lease up this space and has just unveiled several new restaurants including Eastman Egg Company, BenjYehuda, Piggy Back Tavern BBQ, Madison Tavern, Halsted Street Deli and Freshi, which Todd Siegel, first vice president for CBRE, says are more more in-line with the current tastes and expectations of office users and commuters.
“There are few assets in North America that combine a world-class office building, a train station that delivers more than 115,000 commuters a day and an opportunity to redevelop and curate a retail environment catering to both,” he says. “KBS has been the ultimate steward of this asset in acknowledging the uniqueness of this opportunity and allowing CBRE to truly partner in redefining and reinventing the building for the future.”
Over the past year, KBS' capital improvement and repositioning program for the 1.4 million square foot property also included upgrades to the building's public spaces, including a new lobby and atrium, newly-renovated restrooms and multi-tenant corridors. In addition, KBS added a new tenant lounge with a temperature controlled wine room, an expanded and improved conference center and a new fitness center with a basketball court.
“500 West Madison offered KBS a unique opportunity to rebrand our presence in Chicago by transforming this impressive asset,” says Brett Merz, senior vice president and asset manager for KBS. “Within 18 months, we have completely transformed the way the building operates, the amenities which are offered, and, ultimately, the experience that is felt throughout the property.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
