Newmark announces the firm’s Midwest Capital Markets team has completed $45.15 million in office sales within the 17-day period between November 1, 2023 and November 18, 2023. The closings, all of which were facilitated on behalf of the sellers, are comprised of four distinct transactions across three assets, including Woodlake Corporate Park in Lombard, Illinois; 2300 Cabot Drive in Lisle, Illinois; and One & Two Riverwood Place in Pewaukee, Wisconsin. Newmark Executive Managing Director Jim Postweiler, Senior Managing Directors Peter Harwood and Derek Fohl and Associate Director Jack Trager, worked on behalf of the seller for all sale transactions.
Woodlake Corporate Park is a seven-building portfolio comprised of stabilized assets and high-vacancy, value-add assets. Originally, the sale was positioned and marketed as a single portfolio, however, during the marketing process, the Newmark team recognized that investors were under-valuing the high-vacancy assets in the context of the portfolio–pulling down pricing. In recognizing this, the team implemented a creative, strategic approach that allowed investors to bid only on the assets that were most attractive to them. In turn, the team’s so-called matchmaking approach resulted in their achieving a significantly higher value for the seller Brennan Investment Group albeit identifying two buyers with distinct investment priorities–one investor for the stabilized properties; and one investor for the high-vacancy, value-add properties.
A high-level summary of the recent sale transactions includes:
Spanning two transactions, the $25.9 million sale of Woodlake Corporate Park in Lombard, Illinois. Newmark, on behalf of the seller Brennan Investment Group, completed:
- A five-building portfolio sale, trading the assets to Avalair Group; followed by
- A two-building portfolio sale, trading the remaining office assets to Woodside Capital Partners.
Spanning two transactions, the $19.25 million combined sale price of 2300 Cabot Drive and One & Two Riverwood Place. Newmark, on behalf of the sellers, completed:
- The sale of 2300 Cabot Drive, trading the asset from Bridge Investment Group to Urban Commercial Property Group
- The sale of One & Two Riverwood Place, trading the assets from The Broe Group to Woodside Capital Partners.