Wells Core REIT Grabs 172,000-SF Suburban Chicago Office Property
- Jul 06, 2012
Wells Core Office Income REIT has added a second suburban Chicago asset to its portfolio with the acquisition of Four Parkway North, a 172,000-square-foot office property in Deerfield, Ill. The REIT purchased the building from The John Buck Co.’s JBC Fund III in a $40.9 million transaction.
Developed in 1999, Four Parkway North is one of six office buildings at the 85-acre Parkway North Center mixed-use campus. The roster on the five-story structure is full. Amgen USA, CF Industries Holdings Inc., Lundbeck Inc. and Randstad Pharma all call Four Parkway North home, the latter three of which maintain their headquarters in the building. Wells Core REIT has said it has no plans to make significant renovations to the Class A property. “Four Parkway North is a strong addition to the Wells Core REIT portfolio,” said Joe Oglesby, chief investment officer of Wells Real Estate Funds, advisor to the REIT.
It was in 2010 when Wells Core REIT entered the Chicago-area market with the $11.5 million acquisition of the office building at 333 E. Lake St. in Bloomingdale. Like Four Parkway, the property is fully leased; Bridgestone Retail Operations L.L.C. occupies the 71,000-square-foot building in its entirety.
Today, given the heated competition for premier properties in the central business district of major cities, buyers have turned their eye toward surrounding suburbs, and Chicago is no exception. “The capital markets arena continues to perform,” as noted in a report by commercial real estate services firm CBRE Group Inc. “Investors continue to target stabilized, core assets or distressed properties for investments. But getting one’s hands on a fully leased property is no simple task in the current suburban Chicago office market; the vacancy rate for Class A properties in the second quarter was 19.9 percent, as per a report by commercial real estate services firm Jones Lang LaSalle Inc.
High vacancy rate notwithstanding, investors remain keen on the Class A office market surrounding Chicago proper. Other transactions on the horizon include CBRE Global Investors’ pending purchase of One O’Hare Center, a 380,000-square-foot asset in Rosemont. The 163,000-square-foot property at 55 Corporate Center in Lincolnshire is also reportedly under contract.