New Venture May Buy Complex for $80M

Both had worked for Steve Fifield for about 15 years. Blum tells GlobeSt.com that he just realized that now is a perfect time to become a company owner in commercial real estate. "I've got three kids, I was looking around, trying to see what I wanted to do, and the fact is it's just an opportune time to start a new business." He formally left Fifield's employ in July, but stayed another four months to help close up a few transactions.

What really solidified his venture, Blum says, was the help of a childhood friend and neighbor, prominent Chicago real estate developer Michael Alter, who now runs the Alter Group firm that his father Bill Alter started a half century ago. "I consider Michael to be one of the most honorable, straightforward people I know," Blum. "He and I talked for a number of months, and we finalized a deal in January. Mike is providing the overhead, and in return gets a good return on his investment." Both live on White Oak Lane, the origin for the new company name.

Saletta, who has extensive experience in big office leases downtown, says it took not finding tenants for some major properties over a two-year search during the economic downturn to convince him to look for another option. "We had been very successful at leasing up the USG Building, up to 98% and sold at the top of the market in 2006, and the plan was to move forward with properties in the West Loop," Saletta tells GlobeSt.com. However, what firms were looking by then did not have that area of downtown in mind, he says. "In September, I sat down with Steve and showed him we had exhausted our list of near-term expirations. Also, he was transitioning into more apartment acquisitions," Saletta says. He decided to join Blum, and both are seeking out a few candidates to also bring on board.

The two new entrepreneurs confirmed that they are working on the Lisle office purchase, in partnership with Angelo Gordon & Co. and Fulcrum Asset Advisors. However, both tell GlobeSt.com that they are in a strict confidentiality agreement and can't talk about the deal details.

The two-building complex is now owned by a joint venture that includes Tishman Speyer Properties LP. The property has tenants such as the petroleum company BP, which occupies the top two 39,000-square-foot floors of the newer building. Sources say the deal will likely go for about $120 to $125 per square foot. Tishman representatives could not be reached for comment on this story.