Golub & Co. Sells Interest in Chicago High-Rise
- Jun 11, 2018
Golub & Co. has sold Orrington Plaza, a 20-story trophy office tower in downtown Evanston, Ill.
“Orrington Plaza is the premier property in one of the most robust office markets in the Chicago area,” Michael Newman, Golub & Co.’s president & CEO, told Commercial Property Executive. “The building is nearly fully leased, and the demand for this type of office space in Evanston is expected to continue long into the future.”
Under the terms of the deal, Golub will maintain an ownership stake in the property by co-investing with a new institutional capital partner and will continue to operate, manage and lease the building.
“We were pleased to maintain an ownership interest in the property by partnering with a new institutional investor and will continue in our role operating, managing and leasing the building,” Newman said. “It fits in our company philosophy of creating value through thoughtful investment, collaborating with trusted co-investors, and offering best-in-class property management.”
A Budding Building
Located at 1603 Orrington Ave., the property features 309,000 square feet of office space and 30,000 square feet of retail space. Orrington Plaza boasts unobstructed views of Lake Michigan and the Chicago skyline, 24-hour manned lobby security, an enclosed heated garage, a tenant lounge and a bike room.
The retail component comprises a Next of Kinship restaurant and café from Chicago-based L3 Hospitality Group, a full-service JP Morgan Chase branch and a wealth management office.
“The building’s value had risen because of Evanston’s tight office market, low vacancies and rising rents,” Newman said. “Many investors were looking for this type of stabilized core property, and Orrington Plaza does not have many direct competitors that provide the same level of office space and service in Evanston.”
Orrington Plaza is situated in downtown Evanston, in a vibrant neighborhood with many retail options, including fine dining and casual restaurants and a City Target. Its proximity to both the Chicago public transit and the Metra commuter train make it easy to access from all areas of Chicago and its suburbs. Evanston is also the home of Northwestern University, offering tenants’ businesses a nearby recruiting pipeline.
Adam Short, Golub’s vice president of acquisitions, negotiated the transaction on behalf of the company. The sellers were represented by Paul Lundstedt and Dan Deuter, brokers at CBRE.
In May, a joint venture of Golub & Co., MetLife Investment Management and The John Buck Co. signed Facebook to a 755,900-square-foot lease at Park Tower at Transbay, a new Class A building in San Francisco.
Image courtesy of Golub & Co.