A joint venture between Clear Height Properties and Harbert United States Real Estate Fund VII, L.P. , along with its parallel fund (“HUSREF VII” or the “Fund”), has acquired the Plumwood Tech Center at 1201 E. Wiley Road in northwest suburban Schaumburg. The purchase of the single‐story flex building represents the third acquisition for the group which began with a recapitalization of a 15‐building, multi‐tenant industrial portfolio earlier this year.
The seller was represented in the transaction by the CBRE Capital Markets Group team of Gary Nussbaum, Michael Whisler, and Kevin Kobe. Details of the purchase price and seller were not disclosed.
The property is a Class B, single‐story flex building totaling 65,767 square feet that is currently 70.1 percent leased. Tenants include Key Code Media, SKC Communication Products, Rexel USA, Inc and Strategic Mobility Group. This stable base of tenants should afford CHP and HUSREF VII current cash flow as they seek to further increase occupancy at the building.
According to Tom Seurynck, Vice President of Asset Management & Acquisitions at CHP, the venture was attracted to the asset in large part because of its great location with prominent highway visibility and good access to and from the surrounding area for tenants.
“With these characteristics, and others, Plumwood Tech Center fits well into the existing portfolio of well‐located, multi‐tenant industrial/flex space we recently created with our partner, HUSREF VII,” he said.
Immediately following the acquisition, Clear Height will launch a capital improvement effort to convert currently vacant space from a heavy office use to more traditional industrial flex space under the belief that demand for this type of space is more robust. Vacancy in the building includes approximately 19,665 square feet, comprised of three spaces ranging from 3,588 to 9,920 square feet, with the ability to combine a contiguous block of more than 16,000 square feet.
Marketing for the property will be handled by the team of Josh Will, Joe Bronson, and Aimee Goudas of NAI Hiffman.
“The property is already producing cash flow, but capitalizing on its location to lease up the remaining vacancy offers the chance to add significant value here,” Seurynck said.
