CHICAGO | River Point | 730 FT | 52 FLOORS

[Marcu]

Hines' strategy for turning a profit seems fairly streight forward. Give a big name prominent tenant a break on the price per square foot and hope to land other tenants that want to associate/be close to the prominent tenant later on during the construction phase. The other tenants though don't get the same deal and end up paying much higher rates per square foot. Hines usually justifies the higher rate by giving them the highest floors n the buildng. If you notice, the big name tenants (Kirkland Ellis, Blair, etc.) usually occupy the middle floors not the very top floors.

[j korzeniowski]

Originally Posted by honte

Well, if you read between the lines, Blair currently leases roughly 288,000 sq. ft. of space. So, this is a fairly significant expansion for them, and a big stamp of approval for downtown and their prospects for growth here. I'd say it does "do" a lot for downtown.

Now, can we PLEASE get that boat rental component back into this plan?

well, honte, having read your, bvic's and others' posts intently since joining this forum, if you're ok, i'm ok. (and that is a significant step up for william blair in expanding their space over 20%.)

[honte]

^ I hope I didn't sound preachy or doctrinaire; that wasn't the intention!

_____________

So, with this one nearly in the bag, I am giving some thought to the Carroll Ave. circulator plan. Consider: 200 N. Riverside, Wolf Point, 300 N. LaSalle, 353 N. Clark, Trump Tower... all of these developments could be immediately adjacent to dedicated mass transit with this one line. Do you guys think now is the time!? (Do you think I should have posted this in the transit thread? Sorry if so!)

[Dr. Taco]

yes, honte, it was inappropriate to post that issue here....but then I probably wouldn't have read it what is the plan you are talking about? obviously mass transit going west along the river or something, but more specifically...

[honte]

^ Well, if we're going to get into specifics of the plan rather than 200's impact, let's do discuss it in the transit thread.

I'll put a post in there to this effect:

http://forum.skyscraperpage.com/show...101657&page=60

[Knightwing]

Seeing that the earliest that they would begin construction on this one isn't until 2009, what are the chances that this could be raised another couple hundred feet between now and the time it goes before the city?

[honte]

^ I guess anything could happen...

But I don't think it will on this one. Hines seems to stick to their guns and just get the thing done the way they envisioned it early on. Plus, their deal with the Kennedys has me scratching my head a bit. They must has signed some kind of non-compete that clearly stated how big this development is, and that they will not do any other deals or expand their other existing developments until the Kennedy building is fully leased. How else could they get them to sign on? Similarly, Levy must be a bit curious how Hines can market to "his" tenants and the Wolf Point building at the same time - I am guessing there must be a similar clause in his contract with them.

On the other hand, residential mixed use seems more feasible now that they have an anchor tenant so far in advance, and know without question that they can get the development off the ground. Despite everyone's good points against this kind of building, I feel that the main obstacle to doing this kind of deal is not having an anchor tenant, hence not knowing with certainty that one can deliver the residences one sells. Hines should realize that they are wasting many millions of dollars in condo sales at this location, especially if none of them are lower than 700'.

[10023]

Originally Posted by honte

Well, if you read between the lines, Blair currently leases roughly 288,000 sq. ft. of space. So, this is a fairly significant expansion for them, and a big stamp of approval for downtown and their prospects for growth here. I'd say it does "do" a lot for downtown.

Eh. William Blair is an investment bank. Investment banks don't do suburbs. And please don't mention Goldman Sachs' Jersey City tower - that's back office folks, not actual bankers. There was some discussion about moving bankers, but they realized it would have caused an insurrection and made everyone leave.

So William Blair moving to this tower really says nothing aside from either:
1. They didn't like their space in the USG tower.
2. They need more room than they can get in the USG tower.
3. They'll be paying materially less for space in this tower.

That's it. It's not really a stamp of approval for the downtown market vs. any other market in the metro area. And investment banks open satellite offices, but they don't just up and move cities. So basically as long as there is a William Blair & Co., it will be headquartered in downtown Chicago.

[the urban politician]

Originally Posted by 10023

Eh. William Blair is an investment bank. Investment banks don't do suburbs. And please don't mention Goldman Sachs' Jersey City tower - that's back office folks, not actual bankers. There was some discussion about moving bankers, but they realized it would have caused an insurrection and made everyone leave.

So William Blair moving to this tower really says nothing aside from either:
1. They didn't like their space in the USG tower.
2. They need more room than they can get in the USG tower.
3. They'll be paying materially less for space in this tower.

That's it. It's not really a stamp of approval for the downtown market vs. any other market in the metro area. And investment banks open satellite offices, but they don't just up and move cities. So basically as long as there is a William Blair & Co., it will be headquartered in downtown Chicago.

^ Point taken, but the fact that Blair is expanding can be taken as a sign that they anticipate more hiring, and that for sure is a good thing.

By the way, I'm guessing you live in Manhattan. Upper West Side, might I venture to guess?

[honte]

Originally Posted by 10023

That's it. It's not really a stamp of approval for the downtown market vs. any other market in the metro area. And investment banks open satellite offices, but they don't just up and move cities. So basically as long as there is a William Blair & Co., it will be headquartered in downtown Chicago.

I actually was comparing the desire to expand in Chicago vs. other downtowns across the world, not Chicago vs. suburbs.

If you look at the trends here, most of the companies moving to new class A+ space actually reduce their space requirements by more efficient use of space, even if they are looking to hire more workers down the road. This is an example of a company taking a good amount of new space, despite the trend - that was my point. Hiring a good number of new downtown workers is obviously in their future.

[honte]

I think I can post this here, since it's a press release. I believe it is very recent; sorry if it's a repost.

____________________

HINES/LEVY JOINT VENTURE ANNOUNCES PLANS FOR NEW 50-STORY

OFFICE TOWER ON PRIME RIVERFRONT SITE IN DOWNTOWN CHICAGO


(CHICAGO) – Hines, the international real estate firm, in a joint venture with Chicago entrepreneur and real estate investor, Larry Levy, has announced plans for a new 50-story, 1.1 million-square-foot office tower in downtown Chicago. The state-of-the-art building will be constructed in the West Loop on a prime 2.5-acre site along the Chicago River at Lake and Canal streets. The anchor tenant is expected to be Chicago investment firm William Blair & Company, which has signed a letter of intent to lease 325,000 square feet. William Blair, which would occupy three low-rise floors and 10 high-rise floors, has been located at 222 West Adams Street since 1994.

Construction on the building is expected to begin in late 2008 with a projected delivery date of June 2011. The Staubach Company represented William Blair & Company in the letter of intent negotiations.

“This building will be an iconic landmark marking the intersection of the three branches of the Chicago River. This corridor has become the preferred corporate and headquarters location for premier professional firms,” said Greg Van Schaack, a senior vice president at Hines’ Chicago regional office. “There is also the popularity of the West Loop submarket due to proximity to public transportation, retail, restaurants and housing. Hines is honored to have the opportunity to develop this tower for William Blair & Company, one of Chicago’s most prestigious firms.”

The office tower was designed by New Haven, Conn.-based Pickard Chilton Architects. The curved glass and metal clad tower will offer extraordinary views down the main branch of the Chicago River to Lake Michigan. In addition to advanced building systems, it will feature elliptical 25,000-square-foot floorplates, efficiently configured for maximum space planning flexibility for larger users. The key feature of the development is a 1.5-acre public park that will cover the existing rail tracks and offer a dramatic transition to a new river walk along the site.

“Hines has worked with us to customize a great headquarters solution for William Blair & Company in what will become a cornerstone of architecture and design along the Chicago River,” commented Steve Stratton, president of The Staubach Company’s Chicago office.

Hines’ development team will pursue LEED-CS (Core & Shell) certification from the U.S. Green Building Council, with the aim of achieving Gold status, which would establish the building as a major high-performance sustainable design development. Another Hines downtown Chicago office development currently under construction at 300 N. La Salle St. has achieved LEED-CS Gold pre-certification.

Hines entered the Chicago real estate market in 1981 with the development of Three First National Plaza. Its Chicago-area office portfolio of owned and managed properties currently exceeds 12 million square feet.

Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The Hines portfolio of projects completed, acquired and managed for third parties includes more than 950 properties representing approximately 380 million square feet of office, residential, mixed-use, industrial, hotel, medical, retail and sports facilities, as well as large, master-planned communities and land developments. With offices in 67 U.S. cities and 15 foreign countries, and controlled assets valued at approximately $16 billion, Hines is one of the largest real estate organizations in the world.

[Knightwing]

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[SamInTheLoop]

Thanks for posting that release - first time seeing that one.
I am actually expecting at the very least site prep to begin in fall
2008....seems to make more sense to me....

[Alliance]

Originally Posted by honte

This building will be an iconic landmark marking the intersection of the three branches of the Chicago River. This corridor has become the preferred corporate and headquarters location for premier professional firms,” said Greg Van Schaack, a senior vice president at Hines’ Chicago regional office. “There is also the popularity of the West Loop submarket due to proximity to public transportation, retail, restaurants and housing.

So WHY isn't it taller again?

[forumly_chgoman]

^^^^I agree though ~700 is nothing to scoff at....I'd still like to see a couple, three hundred feet added

[spyguy]

http://www.globest.com/news/970_970/.../163145-1.html

Hines/Levy Sign Firm for $400M Office Tower
By Gina Kenny

A joint venture between Hines, headquartered in Houston, and Chicago food service entrepreneur Larry Levy is planning a $400-million office tower development along the Chicago River at Lake and Canal streets.

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The article refers to the building as "River Pointe."

[Steely Dan]

Originally Posted by spyguy

The article refers to the building as "River Pointe."

ooooooh, "pointe" with an "e"........... that means it will be klassy.

[X-fib]

[a chicago bearcat]

the boutique hotel plan frustrates me
because if it wasn't a separate structure
it would add 5 or more floors to this building,
which would be very welcome
given the chance of an 89 story Wolf Point tower

[djvandrake]

Originally Posted by Steely Dan

ooooooh, "pointe" with an "e"........... that means it will be klassy.

Sure to be the Centre of attention!