Equus Capital Relists Healthy Suburban Chicago Office Complex

A major west suburban Chicago office complex is back on the market, and its strong fundamentals could set a benchmark for stabilized assets in a market still dominated by distressed sales.

Equus Capital Partners tapped JLL to sell Mid America Plaza, CoStar reported. The two-building, 413,000-square-foot complex is in Oakbrook Terrace across from the Oakbrook Center shopping mall. The property was listed in 2022 but failed to trade as interest rates climbed and investor appetite for suburban office assets dried up.

This time around, the offering is being pitched as a rare chance to buy a high-occupancy property with long-term leases and fresh upgrades. JLL’s Patrick Shields, Sam DiFrancesca, Jaime Fink and Bruce Miller are handling the sale. The asking price wasn’t reported.

The buildings, at 1 and 2 Mid America Plaza, are 87 percent leased with a 6.5-year average lease term, according to JLL. The complex has seen 117,000 square feet of new leases and renewals in the past year and a half.

Tenants include Graycor Services, BCS Financial and Mike Ditka’s Restaurant, all of which have extended their leases since 2021. Some of the vacancy includes move-in-ready spec suites, offering upside for investors looking to push occupancy.

Equus, based in Newtown Square, Pennsylvania, bought the property in 2016 for $78 million, about $189 per square foot, and has since invested $17.7 million in mechanical upgrades, common areas and amenity improvements.

The listing is being marketed as a “buy below replacement cost” opportunity. Most recent office trades in Chicago have involved buildings with high vacancies, expired leases or loans heading into distress.

A successful deal here could help establish comps for suburban office buildings that are neither distressed nor outdated. That’s a narrow slice of the market where investors are starting to circle, especially for assets with credit tenants and updated systems.

— Judah Duke