GE Capital Looking to Offload Three Suburban Office Complexes
- Jan 02, 2012
GE Capital will sell three suburban office complexes, totaling around 1.2 million square feet, ChicagoRealEstateDaily.com reports. The properties were acquired in 2007 by the General Electric Co. for $302 million but they are likely to get less than that now.
The properties for sale are:
- Corporate 500 Centre, a four-building complex totaling 698,000 square feet, located at 500 Lake Cook Road, Deerfield. It is currently 94 percent occupied. The anchor tenant is Beam Inc., the Jim Beam bourbon maker.
- One Parkway North, 225,000 square feet, located at 1 Parkway Boulevard North, Deerfield, is currently 91 percent occupied. United Stationers occupy most of the space.
- Pointe O’Hare, 264,000 square feet, located at 9550 West Higgins Road, Rosemont, is currentl 93 percent occupied and is serving as the headquarters of Cole Taylor Bank.
Chicago-based Jones Lang LaSalle Inc. has been hired by GE Capital to market the properties. In the last couple of years, the office values rose, but still remain below the peak levels of 2007. At that time, GE Capital paid $1.1 billion for a 4.4 million-square-foot portfolio that included the Deerfield and Rosemont properties, which were estimated at a combined value of $302.3 million. Currently the properties are expected to draw a maximum of $280 million, or around $230 per square foot.
William Novelli, senior vice president at CBRE Inc., said that although the buildings are considered Class A, with a quality rent roll and location, they still don’t fall into the category of buildings that were most sought after by investors in 2011. Investors focused their attention on super high-end buildings or highly vacant ones.
Photo Courtesy of: GEcapital.com