CHICAGO—90 North Real Estate Partners just completed the acquisition of the Continental Automotive building at 21440 W. Lake Cook Rd. in Deer Park, a northwest suburb, for about $40 million. As reported in GlobeSt.com, the London-based company recently opened a Chicago office and plans to invest about $750 million in office properties across the US. It also just bought a class A building in Denver fully occupied by the FBI. The Deer Park building is its second acquisition.

Continental AG acquired the 351,425-square-foot building in 2006 but no longer needs the entire space. It will continue to occupy about 200,000-square-feet under a long-term lease. 90 North plans to rename the property the Reserve at Deer Park and bring in at least one and possibly several tenants to occupy the top three floors of the seven-story building.

“It's a quality building and we also have a quality tenant,” Daniel T. Cooper, the head of 90 North's North American operations, tells GlobeSt.com. Continental's 13-year lease gives the property, first developed by Motorola in 2002, a good deal of stability, and 90 North officials “think it fits in with what corporate America wants.”

Although many companies have begun hunting for space downtown, and plan to recruit younger workers that want an urban lifestyle, Cooper says “there are people who live in the city who eventually want to get out.” And the Deer Park property is not an antiseptic office park. It includes wetlands, walking trails and other “green” features that many employees will appreciate. “It's just a beautiful setting and suburban offices like this will continue to be very attractive.”

To generate higher yields, 90 North focuses primarily on up and coming secondary markets such as Denver, Raleigh, Orlando and Chicago. Furthermore, the firm plans to create value in its properties before looking for buyers. It will spend about $10 million to reposition the Reserve at Deer Park, for example, and build a new separate entrance for the upper-floor tenant, revamp that office space and enhance common areas, among other improvements.

As part of this transaction, 90 North has selected NAI Hiffman's Jason Streepy, Jason Wurtz and Michael Flynn as the exclusive marketing agents for the building. NAI will also provide property management services

90 North has already set its sights on other major office properties. “We're looking at a place in North Carolina right now,” Cooper says. And company officials have also begun sifting through possible deals in the St. Louis and Indianapolis metro areas. “We're not afraid of the Midwest; we believe it will help us get the returns we want.”