This developer is willing to take a loss on a Naperville office complex

The properties, nearly fully leased, sold for about $83M in 2013

TRD CHICAGO /
Oct.October 31, 2019 05:15 PM
1000 and 1100 E. Warrenville Road (Credit: iStock)

Naperville Woods Office Center at 1000 and 1100 E. Warrenville Road in Naperville (Credit: iStock)

Even when leasing is going well, it’s tough to be an office landlord in the Chicago suburbs these days.

A nearly fully-leased office complex in Naperville is on the market for about $80 million, roughly $3 million less than it sold for six years ago.

In 2013, a venture of Canadian real estate investment trust Agellan Commercial REIT paid $83.4 million for the two-building Naperville Woods Office Center at 1000 and 1100 E. Warrenville Road. Now Elad Group’s Canadian arm, which acquired Agellan earlier this year in a $400 million deal, is seeking around $80 million for the 482,000-square-foot office complex, according to Crain’s.

The buildings were 97 percent leased when Agellan bought them and they’re now 95 percent leased, a rare show of stability when suburban competitors have seen tenants flee for downtown towers in recent years.

The two buildings were vacant in 2005 after telecommunications equipment company Lucent moved out and sold them for $23 million to a joint venture of Chicago-based M&J Wilkow and a subsidiary of Minnesota-based Cargill. The joint venture spent $13.5 million on renovations and leased it to a number of tenants, including Blue Cross & Blue Shield of Illinois parent company Health Care Service Corp., the complex’s biggest tenant, whose lease runs through 2023. Aldi signed a 10-year lease in 2018 for nearly 118,000 square feet.

The 31-acre Naperville Woods property includes a pair of potential development sites along the highway that could be developed for multifamily and hotel uses, according to a flyer from JLL, which is marketing the property.

[Crain’s] — Brianna Kelly


Related Articles

arrow_forward_ios
500 West Monroe Street and Spear Street Capital founder John Grassi (Credit: Google Maps)

Downtown office tower trades for $412M

Renderings of Millennium on LaSalle  

This office-to-luxury rental deconversion just got a big loan

Beverly Hills-based New Pacific Realty Corporation paid $37 million for a 131,000-square-foot warehouse leased by LGS Sky Chefs near O’Hare in Des Plaines (Credit: Google Maps, iStock)

What’s the deal with airline food warehouses selling for $38M?

1450 Sherman Avenue in Evanston, the site of a 273-unit project (Credit: City of Evanston)

Apartment developers are crazy for the Chicago suburbs

Oakbrook Terrace Tower at 1 Tower Lane and Blackstone's Jon Gray (Credit: Google Maps, Getty Images)

Blackstone Group notches big real estate win in Chicago suburbs

Former NFL player Israel Idonije and 200 W. Madison St. (Credit: Getty Images, Google Maps)

Former Chicago Bear launches 1871-styled incubator with insane lease rates

Sterling Bay’s Andy Gloor and renderings of 333 North Green Street (Credit: Sterling Bay)

Sterling Bay’s new Fulton Market HQ is a Sterling Bay construction

IBT Group’s Gary Pachucki and renderings of Humboldt Lit (Credit: LinkedIn and IBT)

The New Fulton Market? Local developer puts $50M bet on Humboldt Park

arrow_forward_ios
Loading...