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Report: Irvine Co. Buying Chicago High-Rise

Irvine Company is extending its buying spree to Chicago with a deal to acquire the Windy City’s 49-story Hyatt Center office building for about $625 million, according to the Wall Street Journal.

The buy would be the real estate company’s first in Chicago and its first outside California. It comes after recent acquisitions in Costa Mesa and Newport Beach for Irvine Co.

A deal for Hyatt Center could close Friday, according to the Journal. It would involve two of the country’s wealthiest—Irvine Co. Chairman Donald Bren and Chicago’s storied Pritzker family, which now owns the building.

The building, on Wacker Drive, has about 1.5 million square feet of office space. It’s home to Hyatt Hotels Corp., law firm Mayer Brown, Rowe & Maw LLP and offices of Goldman Sachs Group Inc. The building is about 96% full.

Hyatt Center, a distinctive curved glass and stainless steel tower, was completed in 2005.

The building is set to sell for about $400 a square foot, second only in Chicago to the July sale of 300 N. LaSalle Drive for $655 million, or roughly $503 per square foot.

Newport Beach’s KBS Realty Advisors LLC bought 300 N. LaSalle Drive in what is likely the priciest office buy an Orange County real estate company’s ever made.

On Tuesday, Irvine Co. wrapped up its purchase of a three-building office complex near its headquarters in Newport Center.

The company bought Pacific Financial Plaza, a 280,000-square-foot office complex that holds the headquarters of bond fund manager Pacific Investment Management Co. and others.

Terms of the transaction, the first big sale in years for the upscale Newport Center office market, weren’t disclosed.

The Business Journal first reported on an expected deal for the complex last month. Sources said at the time the sale could run close to $125 million if not higher.

Last week, Irvine Co. closed on its buy of Costa Mesa’s Pacific Arts Plaza near South Coast Plaza.

The eight-building property includes offices and restaurants. Pacific Arts Plaza is home to law firm Rutan & Tucker LLP and others.

Terms of the buy, first reported by the Business Journal in early December, weren’t disclosed.

Estimates put the sales price for the 827,000-square-foot property at $213 million, or about $257 per square foot.

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