WEDNESDAY, OCTOBER 15, 2008
by Jenn DankoChicagoThe unpredictability of US dollar is prompting international investors to take a closer at preserving their money by investing into hard assets of real estate.
In the case of Chicago-based Cape Horn Group, the firm was has seen a number of international investors express interest in buying office condo spaces at 55 West Wacker, a 209,000 square foot building located in the downtown central business district.
Juan DeAngulo, regional manager for Cape Horn Group, says that while investors from Spain, Venezuela and Chile are looking to get the edge on economy inflation and dollar depreciation through real estate, domestic buyers are also looking to protect their cash by investing.
The two buyer-profile groups met in the middle recently, when a Miami-based investment partnership purchased 3,509 square feet of office space on the seventh floor of the 15-story building. Investors Samy Marouki and Yvan Martinez purchased the space, which is currently occupied by a prominent Chicago-based, triple credit tenant.
Martinez, from Magokoro Corp., represented the buyers in the transaction while DeAngulo represented the seller.
With the recent purchase, 55 Wacker has now closed on 30 percent of the building, while another 20 percent remains under contract. More than 73,000 square feet of space has been sold.
DeAngulo is hopeful at space within the building will be half-way closed by the end of the year
"For domestic and international buyers, (55 West Wacker) is very attractive," says
DeAngulo, who adds that Cape Horn continues to maintaining solid relationships with lending institutions to keeping driving the deals. "The key is working with financers who will still lend to buyers."
The recent transaction marks the second time Marouki and Martinez have invested in a Cape Horn Group property. A few years back, they bought into a downtown Miami building that the company had also converted into office condos.
Martinez says they are hoping to see similar returns in Chicago.
"Not only do we feel confident about investing in Chicago, but given our successful track record with office ownership in Miami and seeing the market develop here, we expect excellent results given Chicago's sophisticated investors," he says.
Structurally, 55 West Wacker features column-free, 14,250 square foot floor plates; waterfront and skyline views; a full-service health club; bank; and indoor heated parking. Individual offices are available starting at 3,000 square feet and range between $250 and $300 per square foot, depending on finishes and views.
Since purchasing the property in April 2006, Cape Horn Group has invested in significant capital improvements, including common-area renovations, updated elevators, enhanced security system and HVAC upgrades.
"We're selling just a little slower than we had hoped," DeAngulo says. "The past few months have given people a little time to step back and wait but we are still seeing people going through (with the deals.)"
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