(CHICAGO) – Hines, the international real estate firm, representing the Hines/Levy development joint venture, and William Blair & Company announced today the mutual termination of the William Blair lease for Hines’ River Point development in Chicago’s West Loop submarket.
However, Hines and Baker & McKenzie remain committed to the project. C. Kevin Shannahan, CEO of Hines’ Midwest Region, noted, “Due to the challenging capital markets, we were unable to meet William Blair’s required occupancy date in 2011.
Regardless of the outcome, we appreciate their early commitment to the project.” William Blair & Company CEO John Ettelson, remarked, “We continue to believe that River Point will be an asset to Chicago, but it no longer conforms to our timing needs.”
Hines acquired the prime site in 2006 and engaged Pickard Chilton Architects to design a world-class office tower situated at the confluence of three branches of the Chicago River.
Hines signed William Blair & Company and Baker & McKenzie LLP to long-term leases in the project.
To meet pre-leasing and financing requirements, Hines is exploring adjusting the size of the tower.
The construction schedule has been reprogrammed for a 2012 completion according to Shannahan who also noted that “reduced project scale combined with the extended schedule and high pre-leasing commitments will better position the project to obtain financing.”
The proposed building is LEED-CS pre-certified by the U.S. Green Building Council. The project also includes a 1.5-acre public park covering the existing rail tracks and opening the site to a new riverwalk.
Hines entered the Chicago real estate market in 1981 with the development of Three First National Plaza.
Its Chicago-area portfolio of owned and managed properties currently exceeds 12 million square feet.
In addition to equity development, Hines is active in asset, property and development management for a broad spectrum of institutional clients.
The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed encompasses more than 1,100 properties representing 454 million square feet.
With offices in more than 100 cities in 17 countries, and controlled assets valued at approximately $25.8 billion Hines is one of the largest real estate organizations in the world.
Visit www.hines.com for more information.