LaSalle sells its floors at 330 North Wabash

Had planned on building ‘super luxury’ hotel across State Street from Marina City

 Updated story:Langham to take over hotel project at 330 North Wabash

29-Dec-10 – After owning for more than two years, but doing nothing with them, LaSalle Hotel Properties announced today it has sold its 12 floors at 330 North Wabash. (Left) 330 North Wabash (at left) from roof of 35 East Wacker in June 2009.

The owner of Hotel Sax and commercial property at Marina City, located across State Street from the former IBM Plaza, sold the floors for $58.8 million. A press release did not identify the buyer. The seller, Modern Magic Hotel, LLC, is a joint venture in which LaSalle owns 95 percent.

The real estate investment trust based in Bethesda, Maryland, bought space is in the 52-story building on March 18, 2008, paying $46 million. However, after costs of the sale are figured, LaSalle estimates it will lose $8 million on the deal.

LaSalle had planned on spending $100-200 million turning the 375,000 square feet of space into a 335-room “super luxury” hotel. Construction at one time was expected to start in 2010 and finish next year.

In October 2008, LaSalle said it would slow the project “to a normal development schedule.” In March 2009, after reportedly spending $3 million on the project, the company said it was still working on “pre-development” of the site.

Besides Hotel Sax, LaSalle owns the 751-room Westin Michigan Avenue and 32 other luxury hotels.