Hines, which is building the new 60-story Salesforce Tower Chicago at Wolf Point, just purchased another large property in the city’s North Side.
A venture of the firm is under contract to acquire the Bradley Business Center campus for almost $100 million, Crain’s Chicago Business reported. The four-building, 23-acre industrial and office complex is located at 2500 West Bradley Place in the northern part of the city.
The campus runs along the banks of the North Branch of the Chicago River and is 96 percent leased. Tenants of the complex include RCN of Chicago, multiple medical offices and other recreational businesses such as IK Gymnastics, Windy City Ninjas and Goldfish Swim School. About $5.9 million is collectively generated in annual net operating income from all of the tenants.
The owners of the property paid $8.3 million for the site in 2006. At that time the property consisted of three vacant buildings on the western portion of the campus. The owners secured leases over the 15 years and refinanced the property with a $14 million mortgage. The deal with Hines comes out to $210 per square foot.
Another joint venture paid $6.25 million for the 355,000-square-foot building on the eastern part of the property in 2010. After leasing most of the space to more than a dozen tenants, the venture refinanced the building with a $23.4 million loan.
In addition to the already-secured income, the zoning for the campus also allows for as much as 1.6 million square feet of new development. Hines could expand the campus dramatically and/or use the buildings as a last-mile distribution center for retailers that are often willing to pay higher rents for facilities to store and distribute products.
[Crain’s] — Victoria Pruitt