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.
© 2016 Real Estate Communications Group. Duplication or reproduction of this article not permitted without authorization from the Real Estate Publishing Group. For information on reprint or electronic pdf of this article contact Mark Menzies at 312-644-4610 or firstname.lastname@example.org