Beacon Investment Properties LLC has moved into the Chicago market with a $24 million acquisition of Park Plaza, a 210,774-square-foot Class B+ office building with a 94 percent occupancy in suburban Naperville. A Boston-based institutional real estate advisor was the seller.
The acquisition is Beacon’s second foray into the Midwest. In April, the firm, acquired the IDS Center, 57-story office tower and retail complex in downtown Minneapolis, from Inland American of Oak Park for $257 million.
Park Plaza, located at 215 Shuman St., is a four-story, twin-wing designed contemporary building with 52,450-square-foot floor plates divided into 25,225-square-foot wings. Travelers Insurance Co. is the anchor tenant while Transguard Insurance Co. and Medical Staffing Network are among the larger tenants.
“This property is a perfect fit with our investment strategy of buying institutionally owned and maintained office buildings in non-gateway cities at exceptional cap rates and per square-foot values,” said Ariel Bentata, chief investment officer and a founding partner of Beacon. “We’ve been studying Chicagoland for more than a year and we are in active negotiations to acquire additional properties in the marketplace.”
Brian Rosen, who recently joined Beacon as head of acquisitions, said the property was attractive for a number of reasons: it was acquired at $114 per square foot, a deep discount to an estimated $250 per square foot replacement cost today; it has strong employees amenities including a recently upgraded fitness club and deli and below-grade, heated executive parking with a 4.3 per thousand parking ratio.
Dan Deuter, senior vice president and Paul Lundstedt, executive vice president of CBRE Capital Markets’ downtown Chicago office, represented the seller.
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