Retail Properties of America Sells Last Office Asset
- Jun 05, 2018
Retail Properties of America Inc. has sold Schaumburg Towers in Schaumburg, Ill., for $86.6 million. This marks the sale of the firm’s last office campus, which it originally purchased in December 2004 from Zurich American Insurance Co., for $138 million.
Cohen Financial arranged $110 million on behalf of the buyer, American Landmark Properties, to acquire the asset, implement capital improvements and increase tenancy. The loan was secured through Prime Finance Partners and Pearlmark Real Estate Partners. The Cohen Financial team included Managing Director Dan Rosenberg and Vice President Matt Terpstra, of the Chicago office.
Situated at 1400 E. American Lane in the Chicago suburb, the two-building property was constructed between 1990 and 1991. The Class A campus comprises 895,400 square feet across 20 floors. Features include 3,300 parking spaces, a fitness center, 16 passenger elevators and common area Wi-Fi. According to Yardi Matrix, there are six spaces currently occupied by Pylocity, Zurich, Mu Sigma, Acquia, Charles Industries and Great American Insurance Group.
Chicago’s booming market
Chicago continues to add higher-earning jobs, leading to a spike in its office rent growth. Technology companies are starting to expand, taking up larger amounts of office space, while the education and health care sectors are looking to host a smaller footprint. Facebook will add around 500 new employees to its Chicago space and Walgreens Boots Alliance will double its payroll to include 300 new tech positions.
Younger professionals are flocking to the metro, creating a higher demand for apartments and jobs. According to Yardi Matrix data, a 2.8 percent rise in Chicago’s multifamily rents is expected for 2018.
Image courtesy of Yardi Matrix