Property Details


1616 E Roosevelt Rd
Wheaton, IL 60187

For Lease
$13.50/MG

Property Type Office
SF 13280
Available 750-2450
Built 1963/Reno
Floors 2
Acres .32
Zoning B-3
Parking 48
Signage Monument
Rate $13.50/SF MG


Description


High visibility Professional Office building with monument sign on busy Roosevelt Rd in Wheaton minutes from I-355 N-S. Ample 48 car parking lot. Recently renovated and very well maintained with an attractive front foyer and rear entrance. 750 SF, 2,200 SF and 2,450 SF Office Suites available for lease at a very competitive rate.


Highlights


  • Attractive Professional Office Building
  • High Visibility Roosevelt Rd Location with Monument Sign
  • Minutes from I-355 N-S Tollway
  • 750 – 2450 SF Suites Immediately Available

[pw_map address=”1616 E Roosevelt Rd Wheaton IL 60187″]

Contact

reis-apartments

Armageddon on Hold for Four Quarters

  • The national vacancy rate for multifamily remained moored at 4.4% in the third quarter, unchanged since the fourth quarter of 2015 despite the large number of new deliveries.
  • This confirms what we have posited thus far about demand remaining robust even as supply growth increases. With that said, this equilibrium is tenuous and likely won’t last.
  • For markets that experienced either a large increase in rents over the last few years, or a steady influx of new buildings – or both – landlord pricing power is being tested.
  • Market conditions in the apartment market softened a bit in the third quarter, a period they generally see the highest activity and strongest rent growth.

reis-office

On Pause, Those Fine Hopes for 2016

  • We started 2016 feeling fairly optimistic about the prospects of the office sector. With the national vacancy rate declining by 40 basis points last year, we were poised to finally see an acceleration in improvement in fundamentals for the office sector.
  • With national vacancies remaining stuck at 16.0% in the third quarter, it appears that optimistic hopes about the prospects of the office sector have been put on hold – at least till the fourth quarter.
  • While the numbers disappointed in the quarter, much of the decline was a lagged response to tepid employment and economic conditions in the first quarter.

reis-retail

Two Steps Forward, One Step Back

  • The national neighborhood and community center retail vacancy rate increased by 10 basis points during the third quarter to 10.0%; the retail mall vacancy rate decreased by 10 basis points to 7.8%.
  • Both minor changes represent a reversal in the second quarter when the neighborhood and community center vacancy rate decreased and retail mall vacancy increased, both by 10 basis points.
  • Neighborhood and community centers have lagged due to the slow growth in median household income that has kept a lid on discretionary spending over the last few years.
  • Both neighborhood and community centers and regional malls face competition from newer and fresher retail concepts as well as e-commerce.

reis-industrial

A Downshift in Demand

  • The momentum in the industrial market slowed a bit as demand growth decelerated. Nevertheless, vacancy held steady in the warehouse and distribution sector as net absorption exceeded new construction by a small margin.
  • Although the industrial sector has outperformed other property types in terms of occupancy growth, the down-shift observed in the third quarter puts the asset class on par with office and retail which followed a similar pattern.
  • Echoing the sentiment we expressed last quarter, the slow but steady rate of growth should continue going forward as most metros continue to see demand growth for industrial space.
  • Vacancy declined in the Flex/R&D subsector largely due to a sharp drop in new construction.
  • Net absorption slowed somewhat but remained positive. Market rents increased but also at moderate rates, similar to the second quarter.
  • Once again, every metro posted positive rent growth for the quarter, although some outperformed others.

reis-construction

New Construction at the Cusp of Economic Change

  • The third quarter of 2016 was marked by a somewhat consistent trend – a pronounced pullback in new completions, relative to recent quarters.
  • This is readily apparent in the apartment and office sectors, but less so in neighborhood and community shopping centers where supply growth has been anemic for several years anyway.
  • What caused this pullback – especially in multifamily where we were expecting a deluge in new supply?
  • Any pickup in activity for new completions is likely to be driven by projects that are already in the pipeline, just waiting to come online in what may well be a deluge for the apartment sector in the fourth quarter.

Source: REIS

A California real estate investment firm bought a Naperville office complex for $18 million, 29 percent less than the property's pre-recession price in 2007. Irvine, Calif.-based Sperry Equities bought Washington Commons, an approximately 200,000-square-foot office complex on Diehl Road, according to DuPage County records. The deal comes nine years after the complex sold for $25.2 million, before the recession hammered suburban values. In many cases values have never fully recovered. Although the property's value remains below pre-crash levels, Sperry believes it can cash in on the lowest suburban office vacancy in 14 years, allowing it to charge higher rents than those in deals signed in the past few years. Suburban vacancy was 18.5 percent to end 2015 and 18.6 percent in the western part of the east-west corridor, according to Chicago-based Jones Lang LaSalle. “They bought it in 2007 at the peak,” said Burton Young, a Sperry Equities principal. “Rents haven't recovered to where they were in 2007, but we believe we can capitalize on market timing. There are some rents there that are low relative to the market, and there's room to increase the occupancy. We think it's a market-timing play.” The seller was a Denver-based venture of real estate investment firm EverWest Real Estate Partners and real estate investment trust Dividend Capital Diversified Property Fund. EverWest was known as Alliance Commercial Partners at the time of the deal. Alliance lost a few other suburban buildings to foreclosure during the downturn. The Alliance venture that bought Washington Commons faced a potential loan default on the complex in 2011 because of rising vacancy, according to a Bloomberg loan report. But the owners later that year negotiated a maturity extension of four years, to February 2016, on the $21.3 million securitized loan, according to Bloomberg. The Alliance venture also made a $4 million equity contribution and split the loans into A and B notes as part of the 2011 modification, according to the loan report. EverWest, which changed its name in 2014, and Dividend Capital representatives did not return calls requesting comment. Washington Commons, at 450-500, 550-700 and 750-900 E. Diehl Road, consists of 10 single-story buildings connected by foyers and hallways, on 21 acres, Young said. The complex was 77 percent leased when Sperry Equities struck the deal to buy it, and several small new leases have boosted occupancy to about 85 percent, he said. The largest tenants are a regional headquarters of Toyota's Lexus division, with 31,000 square feet, and a 17,000-square-foot Bright Horizons daycare, Young said. Sperry Equities, once affiliated with brokerage Sperry Van Ness but now independently owned, plans upgrades including building out move-in-ready suites, he said. “We love Naperville and the surrounding area," Young said. "It's a good long-term hold right off the I-88 tollway and Diehl Road.” Sperry Equities owns about 6 million square feet of commercial real estate, including office and industrial space in Bolingbrook, Hoffman Estates and Tinley Park, Young said.

 A California real estate investment firm bought a Naperville office complex for $18 million, 29 percent less than the property's pre-recession price in 2007. Irvine, Calif.-based Sperry Equities bought Washington Commons, an approximately 200,000-square-foot office complex on Diehl Road, according to DuPage County records. The deal comes nine years after the complex sold for $25.2 million, before the recession hammered suburban values. In many cases values have never fully recovered. Although the property's value remains below pre-crash levels, Sperry believes it can cash in on the lowest suburban office vacancy in 14 years, allowing it to charge higher rents than those in deals signed in the past few years. Suburban vacancy was 18.5 percent to end 2015 and 18.6 percent in the western part of the east-west corridor, according to Chicago-based Jones Lang LaSalle. “They bought it in 2007 at the peak,” said Burton Young, a Sperry Equities principal. “Rents haven't recovered to where they were in 2007, but we believe we can capitalize on market timing. There are some rents there that are low relative to the market, and there's room to increase the occupancy. We think it's a market-timing play.” The seller was a Denver-based venture of real estate investment firm EverWest Real Estate Partners and real estate investment trust Dividend Capital Diversified Property Fund. EverWest was known as Alliance Commercial Partners at the time of the deal. Alliance lost a few other suburban buildings to foreclosure during the downturn. The Alliance venture that bought Washington Commons faced a potential loan default on the complex in 2011 because of rising vacancy, according to a Bloomberg loan report. But the owners later that year negotiated a maturity extension of four years, to February 2016, on the $21.3 million securitized loan, according to Bloomberg. The Alliance venture also made a $4 million equity contribution and split the loans into A and B notes as part of the 2011 modification, according to the loan report. EverWest, which changed its name in 2014, and Dividend Capital representatives did not return calls requesting comment. Washington Commons, at 450-500, 550-700 and 750-900 E. Diehl Road, consists of 10 single-story buildings connected by foyers and hallways, on 21 acres, Young said. The complex was 77 percent leased when Sperry Equities struck the deal to buy it, and several small new leases have boosted occupancy to about 85 percent, he said. The largest tenants are a regional headquarters of Toyota's Lexus division, with 31,000 square feet, and a 17,000-square-foot Bright Horizons daycare, Young said. Sperry Equities, once affiliated with brokerage Sperry Van Ness but now independently owned, plans upgrades including building out move-in-ready suites, he said. “We love Naperville and the surrounding area," Young said. "It's a good long-term hold right off the I-88 tollway and Diehl Road.” Sperry Equities owns about 6 million square feet of commercial real estate, including office and industrial space in Bolingbrook, Hoffman Estates and Tinley Park, Young said.
Naperville Office Complex Sells for $18 Million

A California real estate investment firm bought a Naperville office complex for $18 million, 29 percent less than the property’s pre-recession price in 2007.

Irvine, Calif.-based Sperry Equities bought Washington Commons, an approximately 200,000-square-foot office complex on Diehl Road, according to DuPage County records.

The deal comes nine years after the complex sold for $25.2 million, before the recession hammered suburban values. In many cases values have never fully recovered.

Although the property’s value remains below pre-crash levels, Sperry believes it can cash in on the lowest suburban office vacancy in 14 years, allowing it to charge higher rents than those in deals signed in the past few years.

Suburban vacancy was 18.5 percent to end 2015 and 18.6 percent in the western part of the east-west corridor, according to Chicago-based Jones Lang LaSalle.

“They bought it in 2007 at the peak,” said Burton Young, a Sperry Equities principal. “Rents haven’t recovered to where they were in 2007, but we believe we can capitalize on market timing. There are some rents there that are low relative to the market, and there’s room to increase the occupancy. We think it’s a market-timing play.”

The seller was a Denver-based venture of real estate investment firm EverWest Real Estate Partners and real estate investment trust Dividend Capital Diversified Property Fund.

EverWest was known as Alliance Commercial Partners at the time of the deal. Alliance lost a few other suburban buildings to foreclosure during the downturn.

The Alliance venture that bought Washington Commons faced a potential loan default on the complex in 2011 because of rising vacancy, according to a Bloomberg loan report. But the owners later that year negotiated a maturity extension of four years, to February 2016, on the $21.3 million securitized loan, according to Bloomberg.

The Alliance venture also made a $4 million equity contribution and split the loans into A and B notes as part of the 2011 modification, according to the loan report.

EverWest, which changed its name in 2014, and Dividend Capital representatives did not return calls requesting comment.

Washington Commons, at 450-500, 550-700 and 750-900 E. Diehl Road, consists of 10 single-story buildings connected by foyers and hallways, on 21 acres, Young said. The complex was 77 percent leased when Sperry Equities struck the deal to buy it, and several small new leases have boosted occupancy to about 85 percent, he said.

The largest tenants are a regional headquarters of Toyota’s Lexus division, with 31,000 square feet, and a 17,000-square-foot Bright Horizons daycare, Young said.

Sperry Equities, once affiliated with brokerage Sperry Van Ness but now independently owned, plans upgrades including building out move-in-ready suites, he said.

“We love Naperville and the surrounding area,” Young said. “It’s a good long-term hold right off the I-88 tollway and Diehl Road.”

Sperry Equities owns about 6 million square feet of commercial real estate, including office and industrial space in Bolingbrook, Hoffman Estates and Tinley Park, Young said.

Source: Chicago Real Estate Daily Ryan Ori April 7th, 2016

Buildings with reflections2

Q4 2015 Office Cap Rate Trends

During the fourth quarter the mean office cap rate increased very slightly, but when rounding to tenths of a percent remained unchanged at 6.9%. This is actually up 10 basis points from the level during the fourth quarter of 2014. Meanwhile, the 12-month rolling cap rate was also essentially unchanged versus last quarter at 6.8%. These signals are largely the same ones that we received last quarter. Over the last year cap rate compression for office has slowed. We all know that the in-quarter mean cap rate can be a bit volatile, but the 12-month rolling cap rate is clearly showing some signs of stalling. While this merely looks like a pause, it is important to note that office fundamentals continue to offer attractive upside. In many markets across the country the outlook is brighter over the next five years than was has transpired over the previous five years. But is this true for all markets? Is it impacting transactions and pricing at a more micro level? For now it is important to note that in the historical context, cap rates remain near historically-low levels.

During the fourth quarter the mean office cap rate increased very slightly, but when rounding to tenths of a percent remained unchanged at 6.9%. This is actually up 10 basis points from the level during the fourth quarter of 2014. Meanwhile, the 12-month rolling cap rate was also essentially unchanged versus last quarter at 6.8%. These signals are largely the same ones that we received last quarter. Over the last year cap rate compression for office has slowed. We all know that the in-quarter mean cap rate can be a bit volatile, but the 12-month rolling cap rate is clearly showing some signs of stalling. While this merely looks like a pause, it is important to note that office fundamentals continue to offer attractive upside. In many markets across the country the outlook is brighter over the next five years than was has transpired over the previous five years. But is this true for all markets? Is it impacting transactions and pricing at a more micro level? For now it is important to note that in the historical context, cap rates remain near historically-low levels. When we compare the current 12-month rolling cap rate to the mean 12-month rolling cap rate, we find that it is under by about 40 basis points. This is roughly in line with the difference from last quarter and 10 basis points narrower than what we observed in the apartment market. We mentioned last quarter that the shifting pool of properties traded from quarter to quarter could cause cap rates to rise in short term. While that is what we observed (albeit slightly), the market nonetheless remains incredibly pricey.

When we compare the current 12-month rolling cap rate to the mean 12-month rolling cap rate, we find that it is under by about 40 basis points. This is roughly in line with the difference from last quarter and 10 basis points narrower than what we observed in the apartment market. We mentioned last quarter that the shifting pool of properties traded from quarter to quarter could cause cap rates to rise in short term. While that is what we observed (albeit slightly), the market nonetheless remains incredibly pricey.

Source: REIS Ryan Severino on Mar 18, 2016