By Gabriel Circiog, Associate Editor
Transwestern’s Chicago office recently announced that it has brokered, on behalf of KBS Realty Advisors, the sale of the Oak Creek Center office portfolio in Lombard, Ill. A joint venture between Investcorp and Golub acquired the 427,161-square-foot office portfolio for $39.5 million.
“Investors are beginning to recognize the value in stable, suburban-Chicago, Class B office investments,” said Gary Nussbaum, managing director of Transwestern. “This type of property can generate healthy levered returns in the current low interest rate environment. The sale of Oak Creek Center to a New York-based advisor of Middle Eastern capital marks the third time in 2012 that a significant suburban Chicago office property traded to foreign investor interests. We expect this trend to continue.”
Located in suburban Chicago’s East-West Corridor, the institutional-quality 11-building portfolio features nine single-story and two multi-story buildings in a business park setting. At the time of sale, the portfolio was 87.5 percent leased. Transwestern’s Managing Directors Gary Nussbaum and Thomas Gorman, as well as Senior Associate David Matheis, represented KBS Realty Advisors. The buyer represented itself in the transaction.
In other local real estate news, DuPont Fabros Technology Inc. announced that the company’s CH1 data center in Elk Grove Village, Ill. is now fully leased. Built in two phases, CH1 totals 485,000 square feet, 231,000 raised square feet and 36.4 megawatts of critical load.
An existing financial tenant in the company’s New Jersey facility has leased 0.43 MW in Phase I, and an existing tenant from the company’s Northern Virginia facilities has leased 2.6 MW in Phase II. The two deals take the total number of tenants in CH1 to nine with a weighted average lease term of 9.9 years.
For more market data from Chicago, click here.
Photo Courtesy of: www.oakcreekcenter.com