Stabilis Capital Management is looking to sell a 226,000-square-foot office complex in Naperville. The comes at a time when the suburban office market has seen an uptick in interest as companies look to satellite locations outside Chicago.
The two-building East West Corporate Center is located at 1751 and 1771 West Diehl Road, according to Crain’s, which first reported the listing. New York-based Stabilis bought the property out of foreclosure for $23 million in late 2013. The asset manager — which focuses on distressed assets — then poured about $6 million into capital improvements and leasing, according to Crain’s.
The listing price for the complex was not released, but it appears Stabilis is looking at around $24 million, which would mean a significant loss on investment.
Despite suburban office landlords reporting renewed interest, leasing has been either flat or falling for six consecutive quarters, according to a recent report. Office vacancy through June rose to 23 percent from 22.1 percent at the end of the first quarter, according to JLL.
Naperville has seen some success, though. Last year, the Washington Pointe office building on Diehl Road sold for about $24 million, Crain’s reported. [Crain’s] — Sasha Jones