DEERFIELD, IL-CB Richard Ellis Realty Trust, a subsidiary of LosAngeles-based CBRE, has purchased its first Chicago office propertyhere in a $25 million deal for a 100,000-square-foot property. TenParkway North is 100% leased to Richmond, VA-based Markel Corp., aninsurance firm.

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The John Buck Co. had purchased the building, along withthe other five office buildings in the Parkway North Office Park,from a partnership of Blackstone and the New York State TeachersRetirement System in 2008 for about $169 million. At the time therewere only five buildings on the site with about 775,000 squarefeet, resulting in a purchase price of about $228 per square foot,meaning Buck made a slight profit on this recent sale.Thethree-story Ten Parkway was built in 1999.

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Phil Kianka, EVP and COO with the trust, tells GlobeSt.comthat it has been difficult to find a good property in Chicago.“We’ve been looking, but we’ve not been very successful,” he says.“We’ve been finding other opportunities in other locations, we have84 properties across the country, the United Kingdom and Europe. Wedo like this property, we’re happy about the park that it’sin.”

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Parkway North is 91% occupied, with tenants such as UnitedStationers Supply, Astellas US LLCand Fujisawa. Kianka says thisresult is much better than the local North Shore market, which hasa vacancy of more than 23%. “It’s still a significantly bifurcatedmarket. There’s a good stream of buyers looking for goodincome-flowing assets. We try to avoid the bidding wars, which onlybenefit the seller. We’ve been an active buyer over the past threeyears, there’s definitely been a flight to quality,” he says.

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The trust also owns a 185,000-square-foot industrial building inBolingbrook, IL, purchased in 2007. In September, the trustacquired the 208,000-square-foot 100 Tice Blvd. building inWoodcliff Lake, NJ for about $67.6 million. The property is fullyoccupied, used as pharmaceutical maker Eisai Inc.’s North Americanheadquarters.

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