{"id":1004049026,"date":"2012-10-25T06:15:11","date_gmt":"2012-10-25T14:15:11","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004049026"},"modified":"2022-12-08T16:00:54","modified_gmt":"2022-12-09T00:00:54","slug":"sovereign-capital-acquires-congress-center-in-chicago-for-95m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sovereign-capital-acquires-congress-center-in-chicago-for-95m\/","title":{"rendered":"Sovereign Capital Acquires Congress Center in Chicago for $95M"},"content":{"rendered":"<p><em>\u00a0By Keith Loria, Contributing Editor<\/em><\/p>\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/Congress-Center.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004049028\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/sovereign-capital-acquires-congress-center-in-chicago-for-95m\/congress-center\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/Congress-Center.jpg\" data-orig-size=\"1110,1410\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Congress Center\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/Congress-Center.jpg?w=806\" class=\"alignleft size-medium wp-image-1004049028\" title=\"Congress Center\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/Congress-Center.jpg\" alt=\"\" width=\"236\" height=\"300\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/Congress-Center.jpg 1110w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/Congress-Center.jpg?resize=236,300 236w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/Congress-Center.jpg?resize=768,976 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/Congress-Center.jpg?resize=806,1024 806w\" sizes=\"auto, (max-width: 236px) 100vw, 236px\" \/><\/a><\/p>\n<p>Sovereign Capital Management Group, a San Diego-based real estate company, has purchased Congress Center, a Class A, 524,800-square-foot, 16-story office tower in downtown Chicago, Ill., for $95 million.<\/p>\n<p>The property was acquired through a joint venture between American Recovery Property Trust, a Sovereign managed entity, and New York based Northwood Investors. Brookfield Financial acted as the advisor to ARPT.<\/p>\n<p>\u201cWe felt it is a great asset in a great location and at $95 million, it\u2019s a great price,\u201d Todd A. Mikles, Sovereign Capital Management Group\u2019s CEO, told <em>Commercial Property Executive<\/em>. \u201cOur goal is to continue recapitalizing properties in the Triple Net Properties portfolio\u2014specifically, challenged properties acquired at the height of the real estate market.\u201d<\/p>\n<p>Congress Center is located at 525 W. Van Buren in the West Loop, which was delivered to a high specification in 2002 and is leased to a variety of investment grade tenants, including the U.S. General Services Administration, North American Company for Life and Health Insurance, and AkzoNobel.<\/p>\n<p>Built in 2001, the building offers approximately 520,000 square feet of rentable space and the building\u2019s amenities include a two-story lobby that features granite, glass, exotic wood and stainless steel trim, 24-hour monitored building security and a secure heated indoor executive parking garage.<\/p>\n<p>Mikles explained that because of the property\u2019s last ownership structure\u2014a tenants-in common or TIC arrangement\u2014operating the property was challenging.<\/p>\n<p>\u201cThis was acquired using a tenant-in-common structure back in 2005, so you had 35 people come in and buy a 1\/35 interest,\u201d he said. \u201cThe problem with a TIC structure is that raising money is difficult and you need a certain percent to approve leases.\u201d<\/p>\n<p>By acquiring the property from Daymark Realty Advisors and removing the TIC structure, Sovereign helped investors preserve any equity they had left and maintain their tax status.<\/p>\n<p>\u201cOur mission is to work with the tenant-in-common groups and recapitalize those guys, which is what we\u2019re doing,\u201d Mikles said. \u201cWe want to work through these TIC groups to try and help them and at the same time, buy some good assets.\u201d<\/p>\n<p>Plans are underway for capital expenditure projects that will be instituted in the building over the next 18 months.<\/p>\n<p>\u201cCongress Center is a quality asset that is now under ownership with the financial strength necessary to invest in the building and lease the remaining vacant space,\u201d Mikles said. \u201cNow that it\u2019s free of the TIC structure, we are open for business and we are looking for tenants.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sovereign Capital Management Group, a San Diego-based real estate company, has purchased a Class A, 524,800-square-foot, 16-story office tower in downtown Chicago for $95 million.<\/p>\n","protected":false},"author":952,"featured_media":1004049028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,21783,13,21742,21747],"tags":[],"class_list":["post-1004049026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-investment","category-midwest","category-latest","category-office"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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