Adventus Realty Trust (Adventus) is pleased to announce the acquisition of a three building office complex, Columbia Center I, II, and III, located in suburban Chicago. The Columbia Center complex is located in the desirable O’Hare sub-market, near Chicago O’Hare airport. This is the largest acquisition that Adventus has been involved in and is an important milestone for the Company as it brings our total assets to approximately a quarter of a billion US dollars. The acquisition is the second largest deal in suburban Chicago in 2014 and has made Adventus the eighth largest owner of commercial office space in suburban Chicago.
Rod Johnston, President and CEO of Adventus, states: “The Columbia Center complex is a strategic addition to the Adventus portfolio which now stands at just under 2.1 million square feet with a value of approximately US $250M. The complex itself offers a superior location, access to the neighboring entertainment district, Stephens Convention Center, and is within walking distance of the Blue Line, Chicago’s rapid transit system which connects to Downtown and the Metra. In addition, the complex has a first class amenity package including a state of the art fitness center, two delis, manned security, conference facility, covered parking and shuttle service. We believe the complex offers significant potential rental growth when compared to the competing properties in the area and, as such, have been targeting the complex for acquisition by Adventus for approximately two years.
With the closing of the Columbia Center complex we have exceeded our goals for 2014 of reaching US $200M in asset value. We continue to focus on evaluating new investment opportunities, both in Chicago and in other US cities where we believe suburban office fundamentals are continuing to improve. Our niche of properties in the US $10-$50M range continues to provide us with a strong pipeline of opportunities, both on and off market, and we have become known as a reputable real estate firm in the Chicago marketplace.”
Columbia Center Complex
Located in Rosemont, Illinois, the Columbia Center complex consists of three buildings in very close proximity to each other. The buildings are all between 7 and 9 stories and contain 620,214 square feet of leaseable area in total, and were purchased for US $93.1M, or $150/sf. The properties, which are 93% leased on a long term basis, include a number of high profile tenants including Brunswick Corp., the world’s largest maker of fitness equipment (Life Fitness) World Kitchen, a private manufacturer of kitchenware products including notable brands such as CorningWare® and Pyrex®; Randa Accessories, a 100+ year old leather goods manufacturer for major brands including Nautica, Tommy Hilfiger and Guess; and Resolution Life, a specialty US life insurer with over $13B in plan assets.
The debt financing for the complex was initiated by JP Morgan Chase who provided $66.5M of non-recourse first mortgage financing on a 10 year basis at a fixed interest rate of 4.22%.
Adventus is a Canadian based private Real Estate Investment Trust (REIT) and is focused on US income producing commercial real estate, initially in the suburban office market of Chicago, Illinois. For more information on Adventus including our team, corporate strategy, photo gallery, details of our portfolio and press releases, we invite you to visit our website at www.adventusrealty.com.
ADVENTUS REALTY TRUST
By its Trustee: ADVENTUS REALTY SERVICES INC.
Per: Rodney B. Johnston, CPA, FCA
President and Chief Executive Officer