Canadian REIT Acquires Westfield Business Park in Elgin
- Apr 04, 2012
Westfield Business Park, a 513,313-square-foot office complex located in Elgin, has been acquired by a newly formed Canadian real estate investment trust, Chicagorealestatedaily.com reports.
In February, Commercial Property Executive reported on the intensified activities of Canadian REITs in the U.S. market after Vancouver, B.C.-based Onni Group agreed on a deal to buy the 200 N. LaSalle office tower for over $95 million. This time, the Westfield Business Park was part of an all-Canadian deal, as Toronto, ON-based Brookfield Asset Management Inc. sold the property for $26.5 million to Vancouver-based Adventus Realty Partners LLP.
Jeet Pangli, president of Adventus, confirmed this was the first acquisition for the newly formed REIT. The deal was financed with a $20 million loan from Fairfield, Conn.-based General Electric Capital Corp. Brookfield gave the complex a $33.3 million value back in 2007 when the real estate company acquired it as part of a $300 million sale-leaseback portfolio deal with J.P. Morgan Chase & Co.
The office complex currently houses a J.P. Morgan Chase & Co. operations center, and Mr. Pangli said the price and quality of the tenant drove the company to ultimately choose the four-building complex.
Chicago-based Green Stone Asset Management LLC represented Adventus in the deal, and the company’s managing director Peter Weitz said the recession has not affected Canada as much as it has affected the U.S. He also said Canadian REITs have a lot of capital and are chasing the higher yields that the American market can offer.
The four-building complex is made up of three connected office buildings at 2500 Westfield Drive and a daycare center located at 2450 Westfield Drive. J.P. Morgan Chase & Co. occupies most of the credit card service center, which is currently 86 percent occupied, with around 10 years left on its lease. Green Stone Asset Management LLC has agreed to manage the property.