A bitter cold air mass isn’t the only thing advancing into the Midwest from Canada. Slate Office REIT, a Toronto-based real estate investment firm controlling nearly 40 properties throughout Canada, is looking to add its first U.S. property, 20 S. Clark Street in Chicago’s Loop.
“We are excited to acquire a high-quality, well-located asset in downtown Chicago that offers such attractive returns,” said Scott Antoniak, Slate Office REIT’s CEO. “The acquisition of 20 S. Clark is a first step in our U.S. expansion strategy. We believe the Chicago market provides ample opportunity for future expansion.”
The $85.6 million deal would turn a healthy profit for the current owners, Miami-based Exan Capital and Spanish investor, Allegra Holding, which purchased the office building in August 2016 for $72.2 million.
The $225 per square foot deal nets Slate Office REIT a 31-story, Class A office complex adjacent to the iconic Chase Tower. The 379,903 square foot building is 84% occupied with a weighted average lease term of 5.0 years. High quality tenants have in-place rents that are around 18% below market.
The transaction, which remains subject to customary closing conditions, is expected to be completed in the first quarter of 2018.
