A major office complex near Chicago’s O’Hare International Airport is up for sale after facing significant financial distress.
A lender to former landlord Adventus Realty Trust is seeking a buyer for a three-tower office campus. at 9377 and 9399 West Higgins Road and 6133 North River Road in Rosemont, CoStar reported. JLL’s Patrick Shields and Sam DiFrancesca are managing the listing, which includes an assumable financing option. The property spans 894,000 square feet, according to the listing.
The Vancouver-based landlord Adventus purchased the Riverway portfolio from Blackstone for $173 million in late 2016. The property has struggled financially, with Ameritus defaulting on the commercial mortgage-backed securities loan used to fund the acquisition.
The CMBS loan, managed by LNR Partners and Dallas-based property receiver Trigild, has a remaining balance of $111.3 million, with a 4.96 percent interest rate and maturing in December 2026. The loan balance comes to $125 per square foot.
The campus is 71 percent leased with an average lease term of 5.5 years. Tenants include Wells Fargo Rail, U.S. Foods, Culligan International and Siemens. Electronic components manufacturer Littelfuse signed a 54,000-square-foot lease earlier this year.
The listing comes as other office properties in the O’Hare submarket, including One O’Hare Centre at 6250 North River Road and the two-building Presidents Plaza at 8600 and 8700 West Bryn Mawr Avenue, are listed for steep discounts compared to previous values.
The market for office space has shifted dramatically due to reduced demand from corporate tenants, making distressed assets like Riverway more common.
Other properties being sold with assumable financing include FPA Multifamily selling the ReNew Wheaton Center and Newcastle Investors selling the Brix on Morse to Kurt Bender’s Chicago-based firm.
Editor’s note: This story has been updated to correct the name of the landlord of the Riverway complex.
— Andrew Terrell