CHICAGO—Free Market Ventures, along with its partner Second City Real Estate, recently acquired 6400 Shafer Court, a transit-oriented office building located in the O'Hare Chicago office submarket. The 179,442-square-foot, eight-story building in Rosemont was built in 1980 and subsequently renovated in 1991, 2006 and 2015. The price was not disclosed, but Cook County property records show the new owners paid $17.915 million, a significant boost over the $10.7 million paid for it in 2012.

FMV was founded in 2013, and this acquisition was part of its initial discretionary fund, FMV Fund I. The Chicago-based company analyzes potential deals across the US, and aims to acquire a diverse real-estate portfolio including investments in secured debt, liens, real estate technology, medical marijuana warehouses, land and office.

“Our principals have institutional experience in a variety of real estate projects and therefore look for opportunities based on creating value not by asset class,” principal Jack Buck tells GlobeSt.com.

This is the Fund's first office investment, and it's a good time to get into the market around O'Hare International Airport. New corporate users continue to seek out spaces, according to Colliers International. The overall vacancy rate just sank to 16.8%, a fifteen-year low and a drop of about 140 bps since last year. And net absorption in the O'Hare market totaled positive 228,610 square feet year-to-date.

Fifteen tenants, including Cap Gemini, Seasons Healthcare Management, LLC and Haemonetics Corp., collectively lease 88% of 6400 Shafer.

FMV plans to “create value through aggressive leasing and marketing,” says company founder and president Jack Buck. “Our team has deep roots in the office asset class; we will leverage our operating expertise to the benefit of our fund investors and venture partners.”

Tenants at 6400 Shafer can quickly reach downtown, the other suburbs, and O'Hare due to the many nearby transportation options, including Chicago's Blue Line “L”, a METRA commuter rail, and the interstate highway system.

The building is located within a dense, mixed-use block comprised of the Hyatt Rosemont, two additional class A office buildings, the City of Rosemont Village Hall, a large public parking facility, and several retail establishments.

Greg Tylee, managing director of Vancouver-based Second City, says “6400 Shafer ideally fits our business model of partnering with high quality local operators in strong submarkets. FMV's business plan will position the building very well within the strong O'Hare submarket.”

“We will look to add value to 6400 Shafer by embarking on a series of improvements including a lobby renovation, addition of a fitness center and upgraded common areas,” Buck says. “We anticipate holding the building for three to seven years.”

Cushman & Wakefield has been selected as the leasing agent, and Crossroads Partners will handle property management.

Fifteen tenants, including Cap Gemini, Seasons Healthcare Management, LLC and Haemonetics Corp., collectively lease 88% of 6400 Shafer.

Cushman & Wakefield has been selected as the leasing agent, and Crossroads Partners will handle property management.

Instant Insights /

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