Core Acquisitions Acquires Deerfield Office, Ten Parkway North, for $7M
Core Acquisitions sees Ten Parkway North as a classic value-add opportunity: the building hasn’t been updated in nearly 20 years, and it can be renovated and repositioned as a competitive alternative in the class A North Suburban marketplace, says Core's Bradley Joseph.
DEERFIELD, IL—Core Acquisitions has acquired Ten North Parkway, within the prestigious Parkway North Office Park of Deerfield, IL, in north suburban Chicago from Gramercy Property Trust, an affiliate of Blackstone, for $6.75 million.
Ten North Parkway is a three-story, 100,000-square-foot office building that is currently 100 percent leased to Markel Corporation. The Parkway North Office Park is strategically located immediately west of I-294, east of Saunders Road and south of Deerfield Road.
“We see Ten Parkway North as a classic value-add opportunity: the building hasn’t been updated in nearly 20 years, and with the right design, construction and commitment of capital, can be renovated and repositioned to offer a competitively priced alternative in the class A North Suburban marketplace,” says Bradley Joseph, a principal at Core Acquisitions. “It is in a great location with proximity to multiple interstates and public transportation, strong talent pool for employers, and complimentary businesses in a prestigious North Suburban office park full of amenities.”
Core’s renovation and repositioning plans include upgrades to the building amenities, which includes the lobby, patio, food service, elevators and corridors as well as cosmetic enhancements such as exterior repainting, landscaping, and parking lot repaving. Additionally, Core is launching an aggressive leasing campaign focused on tenants of all sizes in order to replace Markel’s full building lease, which is set to expire in January 2020.
The building’s three roughly 33,000-square-foot floor plates can easily be divided into smaller suites, but it is also ideal for a single-user corporate headquarters, says Joseph.
Ten North Parkway originally was developed in 2000 for Markel Corporation. Advanced Clinical has been a subtenant in the building since 2015.
The North Suburban office market currently has a vacancy rate of 18.4%. The current occupancy rate within the Parkway North Center, which features tenants such as: CF Industries, Essendent, Lundbeck, Alera, PRA and Aerotek, outperforms the greater market, with a rate of approximately 92%.
Blackstone was represented in the sale by HFF. Acquisition financing was provided by Chicago-based Lakeside Bank. Colliers International’s Jason Simon will be leasing the property while property management, construction management, and asset management will be handled jointly by both Core Acquisitions and Colliers International.
The acquisition of Ten Parkway North continues to deploy the value-add strategy that is Core Acquisitions’ strength. Early in 2018, the firm acquired Chatham Centre, a 10-story, 205,000-square-foot office building located at 1901 North Roselle Road in Schaumburg. Core immediately launched an extensive $7 million renovation and repositioning plan of the class A office building and, to date, has improved occupancy from approximately 70% at acquisition to more than 90%, and completed the extensive renovations.
Earlier this year, Core partnered with Orland Park-based Edwards Realty on the acquisition of Burr Ridge Village Center, a 12-year old lifestyle retail center. The joint venture has begun a significant repositioning effort at the center by injecting capital to attract new tenants to long vacant space.