Clear Height Properties has acquired a four-property, 522,000 square-foot Chicago suburban portfolio for $30 million. Included among the properties is 2625 Butterfield Road, a 201,800-square-foot office building formerly known as Butterfield Office Plaza, and more than 320,000 square feet of flex properties in Elmhurst, Bensenville and Willowbrook.
“This is an exciting venture, and another demonstration of the growth and evolution of Clear Height,” said Dominic Sergi, CEO, Clear Height Properties. “We’re always looking for the right opportunities in the Chicagoland market, and these well-located assets fit our model perfectly.”
Managing director Gary Nussbaum, director Michelle Monhaut and associate Paige Gunn of Transwestern‘s Chicago capital markets group provided disposition services on behalf of the seller, Denholtz Associates.
“Investor competition for the portfolio was very strong,” Nussbaum said. “Extremely well-located but underperforming properties such as those in this portfolio present very rare opportunities for investors looking to reposition assets and obtain attractive returns.”
Situated on 10 acres, 2625 Butterfield in Oak Brook is a 201,800 square-foot, three-story office building with premier visibility from the I-88 Tollway. The property has office spaces available for lease ranging in sizes from 700 to 9,000 square feet. At the time of the acquisition the building was approximately 81 percent leased.
According to Sergi, Clear Height has an aggressive value-add strategy, including a significant redevelopment and leasing plan that will be launched very shortly. Among the priorities of that plan include creating a modern, urban amenity package in keeping with what today’s tenants and workforce are seeking: modern conference facilities, fitness center, refreshed entrance, lobby and expanded technology capabilities, among others. In conjunction with that effort, a rebranding initiative also will be launched to drive leasing activity. Jason Pammler, the firm’s newly appointed managing director of project and development services, will lead the building modernization program.
Also included in the $30 million acquisition was Elmhurst Metro Court, a seven-building, approximately 140,800-square-foot flex property located at 747 North Church Road on 8.3 acres in Elmhurst. Overall, approximately 68 percent of the property is industrial space. The building is currently is 78 percent leased, with vacancy including a mix of both office and industrial spaces ranging from 1,000 to 18,000 square feet. Other features of the property include 307 parking spaces, 16-foot industrial space clear heights, 6 overhead metal doors and 13 drive-in doors.
“In line with national trends, we’ve seen a significant increase in investor appetite for well-located, single-story flex assets over the last year in both DuPage County and Cook County,” said Gunn.
Tower Lane Business Park, located at 1050-1100 Tower Lane in Bensenville, is a two-building, 95,905-square-foot flex property in the O’Hare Industrial submarket. Completed in 1980, the property currently is 83.5 percent leased. The vacancy includes a mix of both office and industrial spaces ranging from 2,000 to 10,000 square feet. Property features include 295 parking spaces and 14-foot clear height in the warehouse spaces. The building at 1050 Tower features 14 truck-high docks while 1100 Tower offers 14 drive-in doors.
Willowbrook Court, located at 625-701 Executive Drive in Willowbrook, is a three-building, 84,330-square-foot flex property in the I-55 Industrial market. Completed in the late 1970s, the property is approximately 89.8 percent leased, with vacancy including a mix of both office and industrial spaces ranging from 2,000 to 4,000 square feet. Property features at Willowbrook Court include 206 parking spaces, ceiling heights ranging from 14 – 16 feet and 18 exterior docks.
Given the age of the properties, which were developed in the late 1970s and early 1980s, Clear Height will evaluate the capital expense requirements at each building and undertake a proactive building improvement plan that also will be directed by Pammler.
“These additional properties in the portfolio acquisition represent classic Clear Height acquisitions,” Sergi said. “We see great potential in industrial and flex properties that serve the needs of the small to mid-size user, whether they are established companies or new ventures with great opportunities for growth and expansion.”