SCHAUMBURG, IL-The tallest buildings in this Northwest suburb, Zurich American Insurance Co.’s 1400 and 1450 E. American Ln., have been sold to Inland Western Retail Real Estate Trust for $138-million in a sale-leaseback. Zurich American and the Oak Brook-based REIT struck a 895,418-sf deal, allowing the insurance company in both 20-story towers for up to 37 years.

“This is one of the finest-looking properties I’ve ever bought in a sale-leaseback,” says Inland Real Estate Acquisitions chairman Joe Cosenza. “Driving up to these two black towers, with their excellent view of the Chicago skyline, is a breathtaking experience.”

Besides acquiring two high-profile buildings at $154 per sf that are immediately 100% leased, the REIT has another reason for buying an asset outside of the Western US and retail sector, Cosenza says. “For us, it affords us a tremendously good stream of stable rental income,” he says.

US Equities Realty’s most recent market report pegs vacancy in the Northwest suburban submarket at 24.8%, the worst outside of the East-West Corridor. The deal comes days after the two-building, 550,000-sf Meadows Corporate Center changed hands at just $84 per sf. Chicago-based Golub & Co. and Boston-based Intercontinental Real Estate Corp. paid a reported $46 million for the office buildings at 2550 and 2850 W. Golf Rd. along the Northwest Tollway in neighboring Rolling Meadows.

The buildings at 1400 and 1450 E. American Ln. were constructed in 1990 for the insurance company. Andrew Sandquist and Brian Scott of CB Richard Ellis handled negotiations for Zurich American along with the company’s chief financial officer, Tom Bradley, and treasurer, Mary Fran Callahan.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.