The Real Deal Chicago

Elgin office/industrial complex being auctioned off

The 225K sf Leslie Oaks Business Center is in the hands of a special servicer, and the auction ends Wednesday
By John O’Brien | November 13, 2018 11:00AM

David Iannarone and the Leslie Oaks Business Center

A special servicer is auctioning a 225,000-square-foot office and industrial complex in Elgin this week.

The eight-building Leslie Oaks Business Center is at 580-735 Tollgate Road in the Tollgate Industrial park near the intersection of Interstate 90 and Illinois 31, and it’s being marketed by Mission Capital’s Will Sledge, Kyle Kaminski and Rob Beyer. The auction started Monday and runs through Wednesday on the RealINSIGHT Marketplace, with an opening bid of $3 million.

The complex is in the hands of a CMBS special servicer, though a Mission Capital spokesperson declined to identify the firm. Sources, though, said it is Bethesda, Maryland-based CWCapital.

Close to 90 percent of the 30-year-old complex is office space, with the remaining warehouse use. Tenants include Staples, National Louis University, Zimmer Biomet and Clinical Computer.

The properties are 43 percent occupied, well below the average suburban office and industrial occupancy rates.

Boston-based Cabot Properties earlier this year paid $29.5 million for an industrial property in Elgin, though at 385,000 square feet it is nearly twice as large as the Leslie Oaks properties.

Overall, the Chicago-area industrial market has remained hot, with a Colliers International report this week showing more industrial leasing activity in the third quarter than at any point since 2015.