Great Lakes chairman and CEO Richard May revealed the company's potential acquisitions during an Internet presentation this week to investors, when company officials argued that its stock, recently priced in the $17 range, is selling at a discount.
Great Lakes has 35% of its 5.2-million-sf portfolio in the suburban Chicago market, followed by Detroit at 20% and Milwaukee at 19%. Most recently, Great Lakes picked up 251-940-sf 1600 Golf Rd. in northwest suburban Rolling Meadows for $26 million, buying the property from Chicago-based Jupiter Realty Corp. at an 11% overall capitalization rate. That's the target for acquisitions in the near term.
"To the extent that we're seeing deals at all, the yields on properties are better," May says. "Going forward, we're looking to find additional assets in the 11% range on an all-cash yield rate."
Among suburban office product for sale is 3315 Algonquin Rd. in Rolling Meadows, a six-story, 73,000-sf building marketed by Marcus & Millichap at $7.25 million; as well as the 133,700-sf former US Robotics facility at 8100 N. McCormick Blvd. in north suburban Skokie, being marketed by Grubb & Ellis at $9 million.
While the company has previously set a goal of acquiring $400 million in property this year, chief 0perating officer Patrick R. Hunt says the REIT has seen "a significant interest in a number of our properties."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.