PCCP LLC has provided a $27.1 million senior loan to a joint venture between Transwestern Sponsorship Equity Partners I and Soundview Real Eastate Partners to acquire, re-position and lease-up Corridors I & II, a 50.9 percent leased, two-building Class A office park totaling 299,792 square feet.
The property is located at 2651 and 2655 Warrenville Road, in Downers Grove within the East-West Corridor submarket of suburban Chicago.
The property had been bank-owned since November of 2011 and over-encumbered by debt since its major tenant vacated the building several years before that. This lack of capital has hampered leasing efforts in recent years.
“This opportunity fit well with PCCP’s business strategy,” said Jim Galovan, managing director out of PCCP’s San Francisco office. “We are teaming with an experienced operator and are financing a value-add, Class A asset that was purchased at well below replacement cost.”
Corridors I & II are located adjacent to the East-West Tollway (Interstate 88) and North-South Tollway (Interstate 355) intersection, approximately 25 miles west of downtown Chicago. The five-story steel frame buildings were completed in 1998 and 1999 by Chicago-based Alter Group as part of the Corridors Office Park.
Major corporate headquarters in the area include Navistar (adjacent to the property), McDonald’s Corporation, Advocate Healthcare, Dominick’s, GTE Airfone, Swift-Eckridge Meats, Nalco Chemical, Ace Hardware, Service Master and Federal Signal.
