Chicago-based Golub & Company, an international real estate investment and development firm, announced the acquisition of International Tower, an 11-story, 302,000-square-foot high quality office tower located at 8550 W. Bryn Mawr Avenue in Chicago, near O’Hare International Airport.
“Our suburban investment strategy is focused on well-located properties that have outperformed the broader market in terms of occupancy and offer attractive income growth opportunities,“ said Michael Newman, President and CEO of Golub & Company. “International Tower aligns with this strategy, offering occupancy in excess of 90 percent and stable rental income.“
The O’Hare office market has experienced a strong surge of leasing activity in recent months, resulting in a 190-basis-point drop in vacancies in the past six months, according to a report from Colliers which also points to limited availability of large spaces in the sub-market.
At the end of the third quarter, the direct vacancy in the O’Hare submarket fell to 18.9 percent, and the Class A vacancy rate dropped to 15 percent, according to a report from CBRE. Net absorption reached 238,972 square feet year-to-date, with more than 40 percent of the total absorption—151,018 square feet – taking place in the third quarter, CBRE reports.
“The recovery of the suburban Chicago office market has been slow, but we’ve seen an acceleration in activity this year, particularly in the areas most desired by tenants—high quality, well-positioned buildings in O’Hare and Oak Brook,“ added Adam Short, Vice President of Acquisitions with Golub. “As the market continues to firm up, International Tower is well-positioned to achieve strong income growth.“
Golub was represented in the transaction by Michael Newman, Michael Goldman and Adam Short. The firm’s investment partners in the acquisition include a privately-held investment management group. Terms of the deal were not disclosed.
