Downers Grove Office Building Sells $62 million
A Downers Grove office building sold for less than the seller paid seven years ago, showing pricing still hasn’t recovered for some suburban offices bought before the crash.
A partnership controlled by GLL Real Estate Partners Inc., the U.S. unit of a Munich, Germany-based fund manager, sold the eight-story, 284,278-square-foot Highland Landmark II for $62 million, according to DuPage County property records. The buyer was a venture of Hawaiian real estate firm James Campbell Co.
The GLL partnership paid $68.5 million in 2007 for the building at 3025 Highland Parkway, the records show. It’s 94 percent leased to tenants including Microsoft Corp., Principal Life Insurance Co. and Ford Motor Co.
While the overall suburban office vacancy rate fell to 23.7 percent in the second quarter, its lowest level since 2008, the market has lagged downtown during the slow but steady economic recovery.
Yet the elevated vacancy and bigger risk in the suburbs versus downtown offers investors higher first-year yields. That dynamic has attracted firms like Vancouver, B.C.-based Adventus Realty Trust and the Florida real estate firm now known as Accesso Partners LLC, both of which have made significant bets on suburban assets recently.
A GLL spokesman declined to comment. A team in the Chicago office of HFF Inc. that included managing director Mark Katz handled the sale for the company.
Messages left for Kapolei, Hawaii-based James Campbell Co. weren’t returned. The company owns two other office properties here, a 137,498-square-foot building at 600 N. Field Drive in Lake Forest and the 209,847-square-foot ArborLake Centre in Deerfield, according to its website.
James Campbell also owns nine local industrial buildings.
Source – Chicago Real Estate Daily Micah Maidenberg September 18th, 2014