90 North advises on 351,425 SF office acquisition in Chicago
90 North Real Estate Partners (“90 North”) has completed its second U.S. acquisition, advising an international investor on the purchase of the Continental Automotive building, a Class A office building at 21440 W. Lake Cook Rd in Deer Park, a northwest suburban Chicago suburb. Financial terms of the transaction were not disclosed. The 351,425-square-foot building is being named The Reserve at Deer Park and is easily accessed off Route 53 and 12/Rand Road.
The Reserve at Deer Park, is a seven-story, 351,425-square-foot office building that sits within the 58-acre office campus. The building was developed in 2002 by Motorola and was later acquired by Continental AG as part of a business unit acquisition in 2006. It serves as the main US building for the Interior Division of Continental Automotive Systems, Inc.
“This is another tremendous opportunity for 90 North. It underscores the firm’s North American acquisition criteria,” said Daniel Cooper, Head of 90 North’s operations in North America. “This acquisition provides a significant opportunity to enter a top-tier real estate market with a stable asset that can be enhanced in value over time.”
Continental has leased more than 200,000 square feet (approximately 60 percent) of The Reserve—on a long-term basis for a full range of office and research uses. The remaining approximately 135,000 square feet of space representing the top three floors of the property will be marketed for lease in 2015 and represents an ideal opportunity for another large corporate tenant.
As part of this transaction, 90 North has selected NAI Hiffman’s Jason Streepy, Jason Wurtz and Michael Flynn as the exclusive marketing agents for the building. NAI is also providing property management services and manages and leases more than 56 million square feet in the Chicago area. At the core of 90 North’s and NAI’s strategy will be undertaking a repositioning effort to transition the building to multi-tenant use.
Among these initiatives are upgrades including a new stand-alone entrance for the new tenant; building common area enhancements; and a new parking lot, among other items. The building offers large and efficient floor plates of 45,000 square feet, along with a technology-rich 300-seat auditorium; a 500-person cafeteria; and a covered parking structure. Also, an additional 525,000 square feet of office space, spread over three buildings, is approved to be built on the 58-acre site.
According to Jason Streepy, Senior Vice President of NAI Hiffman, “The property is situated in the northernmost part of the northwest suburban office market, which is particularly attractive because of the low Lake County real estate taxes. The Reserve is ideally located for corporations requiring a strong workforce. Also, it is just off of Lake Cook Road and just west of Route 53 in Lake County, across from the Deer Park Town Center.”
The Deer Park Town Center is a 406,000-square-foot lifestyle center that features tenants such as Century Theatres, Barnes & Noble, Crate & Barrel, Gap, Pier 1 Imports, Restoration Hardware and Apple. The area is known for excellent amenities—shopping, dining and recreational offerings—and highly sought after residential communities, such as Deer Park, Long Grove, Hawthorn Woods, and Barrington, among others. Average household income in the area is approximately $125,000. Other residential communities such as Arlington Heights, Palatine, and Buffalo Grove are in close proximity and are a source of an excellent labor force for businesses at The Reserve.
90 North’s partner, Arzan Wealth (DIFC) Limited, a Dubai-based advisory firm regulated by the Dubai Financial Services Authority, acted as the Strategic Advisor on the structuring and acquisition of the property.