Adventus Realty Trust (“Adventus”) is pleased to announce the off-market acquisition of Highland Landmark V, located in suburban Chicago. The 2008-built property is the fifth and final building located within the 42-acre Highland Landmark Office Park – the elite Chicagoland office park heralded for its market-leading asset quality, design, and irreplaceable location.
“Highland Landmark V is a modern commercial property strategically located in suburban Chicago,” stated Rod Johnston, President and CEO of Adventus. “With this acquisition Adventus has grown its portfolio to approximately 2.4 million square feet with a value of approximately US $350 million. The property is the newest of five located in the Highland Landmark Office Park and is widely regarded as suburban Chicago’s top office park. It is located along the I-88 expressway at the west side of Oak Brook, providing access to both O’Hare and Midway International Airports, with an unrivaled local amenity base and affluent residential communities.”
“We are excited to close on this high-quality asset at a significant discount to its replacement cost. There is a substantial price gap between downtown and suburban office properties and our portfolio is well-positioned to benefit from tightening in suburban office market fundamentals. We are continuing to evaluate new investments in Chicago and other US cities where we see opportunities to take advantage of improving market fundamentals.”
Highland Landmark V
Located in Downers Grove, Illinois, Highland Landmark V has 251,229 square feet of leasable space, and was acquired for US $71.6 million, or US $285/sf. The property, which is 100% leased with an average lease term of 9.4 years, includes the national headquarters location for both DeVry Inc. (a for-profit educational service provider founded in 1931, listed on the NYSE with annual revenues of US $1.9 billion and market capital of US $1.8 billion) and Dover Corporation (a diversified global manufacturer, listed on the NYSE with annual revenues of US $7.7 billion and market capital of US $9.4 billion).
The debt financing for the property was initiated by JP Morgan who provided $46.54 million of non-recourse first mortgage financing on a 5 year basis at a fixed interest rate of 4.451%.
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.
Cautionary Statements Regarding Forward-Looking Statements
This press release may contain forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the previously disclosed acquisitions and future acquisitions of properties. These statements generally can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “forecast”, “expect”, “intend”, “would”, “could”, “if”, “may” and similar expressions. The actual results and performance of the REIT and the acquisitions discussed herein could differ materially from those expressed or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, changes in interest rates, competition and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf.
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ADVENTUS REALTY TRUST
By its Trustee: ADVENTUS REALTY SERVICES INC.
Per: Rodney B. Johnston, CPA, FCA
President and Chief Executive Officer
Highland Landmark V