Itasca offices sold for $78 million
A two-building office campus in Itasca was sold for $78.3 million, according the company representing the seller.
Holliday Fenoglio Fowler announces the sale of One Pierce Place and 500 Park Boulevard, a two-building suburban office campus totaling 976,000 square feet.
The HFF team marketed the property on behalf of the seller, a partnership between Long Wharf Capital LLC and Hamilton Partners, and procured the buyer, a partnership between Balfour Pacific Real Estate Fund IV, a private equity real estate fund of Balfour Pacific Capital Inc., and Hamilton Partners.
One Pierce Place and 500 Park Boulevard are located within the Hamilton Lakes Business Park at the intersection of Interstate 290 and Thorndale Avenue, immediately north of its junction with Interstate 355.
The office campus is situated five miles west of O'Hare International Airport and just one mile from the Itasca Metra commuter rail station providing connectivity to the greater Chicago region. Its location in the premier 300-acre Hamilton Lakes Business Park provides both properties an amenity base, including a Bright Horizons day care, the Hyatt Place Hotel and a full-service Westin Hotel. Additionally, One Pierce Place and 500 Park Boulevard offer tenants on-site amenities, including the 30,000-square-foot Hamilton Lakes Athletic Club, restaurant and deli, conference facilities, direct connectivity to the adjacent Westin Hotel, sundry shops, a full-service salon, medical and dental offices and ticket and travel agency services. One Pierce Place was renovated in 2012 and is 91 percent leased with notable tenants Houghton Mifflin Harcourt and Epsilon. Renovated in 2015, the 94-percent-leased 500 Park Boulevard boasts Keyence Corp., The Boler Company and Hitachi, among its notable tenants.
The HFF investment advisory team representing the seller included directors Bryan Rosenberg and Patrick Shields and senior managing directors Mark Katz, Jeff Bramson and Jaime Fink.
"This was a prime example of a buyer acquiring high-quality suburban office product at a basis and yield that is unachievable in urban areas," Rosenberg said.
"One Pierce and 500 Park provides a fully amenitized project with balanced rollover in a top location in Hamilton Lakes," added Shields.
Long Wharf Capital LLC is a Boston-based private equity real estate manager focused exclusively on value-added investments in the U.S.
Hamilton Partners was formed in 1987 after a core group of partners separated from Trammell Crow's Midwest operations. Hamilton Partners has since grown to be one of the largest privately held real estate development firms in the central US with a total portfolio of over 17 million square feet. The Hamilton portfolio consists of office, industrial, apartment and retail properties with projects in Chicago, Salt Lake City, Denver, Milwaukee and Raleigh Durham.
Balfour Pacific Capital Inc. is a Vancouver-based private equity real estate firm focused on value-added investments in the United States. Balfour is currently investing its fourth fund on behalf of institutions and high net worth investors. Balfour targets underpriced and out-of-favor assets in secondary or challenged real estate markets in the United States.