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Nov. 28, 2012

Retail Properties of America Inc. Sells Aon Hewitt Property; Walgreens Opens Store in Restored Noel State Bank Building

By Gabriel Circiog, Associate Editor

Retail Properties of America Inc. has announced the sale of the Aon Hewitt Property. Located in Lincolnshire, Ill. at 4 Overlook Point, the 818,686-square-foot office property is fully leased to Aon Corporation. The six-story office building is situated around 31 miles north of Chicago and was sold for $148 million to an undisclosed buyer.

The proceeds from the sale were utilized to repay $117.7 million of mortgage debt and accrued interest encumbering the whole Aon Hewitt Campus. The shopping center real estate investment trust continues to own the remaining 343,000-square-foot Aon Hewitt East Campus, which is fully leased to Aon Hewitt.

“The culmination of the Aon Corporation lease extension and the subsequent sale of this property over the past four months highlights our active approach to asset management and our continued ability to achieve our stated strategic initiatives that we set out earlier in the year,” stated Shane Garrison, chief operating officer and chief investment officer of RPAI. “We are pleased with the team’s progress toward meeting our target of $450 to $550 million of asset sales by the end of 2012.”

So far this year, Retail Properties of America Inc. has sold $414.4 million of non-core and non-strategic assets. Since October 1, the company has completed $185.5 million of dispositions, encompassing 1.2 million square feet and including the Aon Hewitt Property and four single-tenant retail properties. All 2012 debt maturities have been addressed in the process.

In other local real estate news, Walgreens has opened its second store in Chicago. The national drugstore chain has collaborated with the city’s Commission on Chicago Landmarks on the restoration of the Noel State Bank Building. Constructed in 1919 and designed by Gardner C. Coughlen in a neo-classical style, the building has been home to numerous banks over the years—the last being Midwest Bank which closed several years ago.

The new Walgreens store, located at the northwest corner of North and Damen avenues in Chicago’s Bucktown/Wicker Park neighborhood, has preserved the historic building’s original architectural integrity.

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