While paying $67 per sf for what it considers a class B asset, Great Lakes REIT buys 1111 E. Touhy Ave. at a 36% discount from the market value placed on the property by the Cook County assessor's office. The steel-and-glass building along the Northwest Tollway is 93%-occupied, according to Great Lakes REIT, which figures the going-in capitalization rate at 13.1%.
However, the company plans to spend $2 million over the next two years on improvements, including a new HVAC system and roof.
"1111 E. Touhy is a quality building in an excellent location, and a property we expect we can add value to over time," says Great Lakes REIT chairman and chief executive officer Richard May. "The purchase of the property will allow us to control the leasing of roughly 300,000 square feet at this location and manage both 1011 and 1111 E. Touhy more efficiently.
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