Core Acquisitions, a Chicago-based commercial real estate investment, development and property management company, has acquired Ten North Parkway in Deerfield, Illinois. Gramercy Property Trust, an affiliate of Blackstone, sold the property for $6.75 million.
Ten North Parkway is a three-story, 100,000-square-foot office building that is currently 100 percent leased to Markel Corporation. The Parkway North Office Park is immediately west of I-294, east of Saunders Road and south of Deerfield Road. Ten North Parkway was originally developed in 2000 for Markel Corporation; Advanced Clinical has been a subtenant in the building since 2015 and other tenants include CF Industries, Essendent, Lundbeck, Alera, PRA and Aerotek.
“We see Ten Parkway North as a classic value-add opportunity. The building hasn’t been updated in nearly 20 years, and with the right design, construction and commitment of capital, can be renovated and repositioned to offer a competitively priced alternative in the Class A North suburban marketplace,” said Bradley Joseph, a principal at Core Acquisitions. “It is in a great location with proximity to multiple interstates and public transportation, strong talent pool for employers and complimentary businesses in a prestigious North Suburban office park full of amenities.”
Core’s renovation and repositioning plans include upgrades to the building amenities, which includes the lobby, patio, food service, elevators and corridors as well as cosmetic enhancements such as exterior repainting, landscaping and parking lot repaving. Additionally, Core is launching an aggressive leasing campaign focused on tenants of all sizes in order to replace Markel’s full-building lease, which is set to expire in January 2020.
Blackstone was represented in the sale by HFF. Acquisition financing was provided by Chicago-based Lakeside Bank. Colliers International’s Jason Simon will be leasing the property while Core Acquisitions and Colliers International will jointly handle property management, construction management and asset management.
The acquisition of Ten Parkway North continues to deploy the value-add strategy that is Core Acquisitions strength. Earlier this year, Core partnered with Orland Park-based Edwards Realty on the acquisition of Burr Ridge Village Center, a 12-year old lifestyle retail center. The joint venture has begun a significant repositioning effort at the center by injecting capital to attract new tenants to long vacant space.
Early in 2018, the firm acquired Chatham Centre, a 10-story, 205,000-square-foot office building located at 1901 N. Roselle Road in Schaumburg. Core immediately launched an extensive, $7 million renovation and repositioning plan of the Class A office building and, to date, has improved occupancy from approximately 70 percent at acquisition to more than 90 percent and completed the extensive renovations.