LOMBARD, IL-KBS Realty Advisors sold its Oak Creek Center office portfolio for $39.5 million to a New York-based joint venture. The buyers, Investcorp and Golub, now own the 11-building, 427,161-square-foot portfolio located in different parts of the area.
According to a press release, Transwestern’s Chicago office represented the seller. Investcorp and Golub represented themselves in the transaction.
“The sale of Oak Creek Center to a New York-based advisor of Middle Eastern capital marks the third time in 2012 that a significant suburban Chicago office property traded to foreign investor interests,” according to Gary Nussbaum, managing director at Transwestern.
“Westings Corporate Center in Naperville, IL is 175,000 square feet and was sold to a private Irish REIT,” he tells GlobeSt.com, referring to transactions completed earlier this year. “Westfield Business Park at 2500 Westfield Dr. in Elgin, IL is 514,000 square feet and was sold to Adventus Realty Partners from Vancouver, BC.” Transwestern expects this trend of increased foreign investment to continue.
“Investors are beginning to recognize the value in stable, suburban-Chicago, Class B office investments,” Nussbaum comments, adding that in the current low interest-rate environment this type of commercial real estate can generate good returns.