Adventus Realty Trust (“Adventus”) is pleased to announce it has acquired three prestigious trophy office buildings (“Riverway”, or the “Properties”) in the suburban district of Rosemont, Illinois for consideration of US$173 million. The Properties are geographically situated at the center of Metropolitan Chicago, intersecting two of the region’s most vital driving arteries, adjacent to the Chicago Transit Authority rail line, and only a few minutes from the O’Hare International Airport, the country’s second busiest airport.
“This acquisition will be a transformational asset to the Adventus portfolio,” commented Rod Johnston, President and CEO of Adventus. “With these Properties, Adventus will own approximately one-third of all Class A office buildings in the top performing O’Hare submarket, and it will make Adventus the third largest office building owner in suburban Chicago. Our property assets with the Riverway acquisition competed, now approximate US$630 million.”
Darcy Brabbins, COO of Adventus, added, “These trophy assets are in a superior location within the most desirable submarket of suburban Chicago, and along with our acquisition of the Columbia Center complex in 2014, provide Adventus with two of the best properties in the O’Hare sub-market. Continuing with our core strategy, Adventus acquired Riverway significantly below replacement cost and at a cap rate of approximately 8.7%.”
Dan Svachula and Michael Simpson of Cushman & Wakefield led the acquisition team for Adventus.
"Amenities and access to public transportation are critical to today's end user, and Riverway has the best of both,” commented Michael Simpson, Senior Director for Cushman & Wakefield in Chicago.
Located in Rosemont, Illinois, Riverway consists of three office buildings, a daycare building and all associated parking totaling 869,120 leaseable square feet, and was purchased for US$173 million, or US$199/sf. Riverway is anchored by the global headquarters for US Foods, Inc. (“US Foods”), representing 37% of the leaseable area with a remaining term of 7.1 years. US Foods is a Fortune 500 (#122 of 500) company and one of America’s leading foodservice distributors, with nearly 25,000 employees and more than 60 locations, generating approximately US$23 billion in annual revenue.
The debt financing for the Properties was initiated by JP Morgan which provided US$128 million of non-recourse first mortgage financing on a 10 year basis at a fixed interest rate of 4.96%.
Adventus is a Canadian based private Real Estate Investment Trust (REIT) and is focused on US income producing commercial real estate, primarily in the suburban office markets of Chicago, Illinois and Atlanta, Georgia. 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, FCPA, FCA
President and Chief Executive Officer