(To read more on the debt and equity markets, click here.)

HOFFMAN ESTATES, IL-In a joint venture with Oak Brook-based Inland American Real Estate Trust Inc., Minto Builders REIT is purchasing the 1.69-million-sf SBC office complex here for $338 million. Currently 100% occupied by SBC Services Inc., the telephone-service provider will remain in the three-building complex for the next 11 years with the option to continue occupancy for up to 40 years. The purchase price totals approximately $200 per sf for the campus.

Joe Cosenza, president of Inland Real Estate Acquisitions, said in a statement that this is the largest single purchase for Inland in the past 35 years.

In October , Inland announced its involvement with Florida-based MB REIT, which will soon be under the Inland umbrella. During the next 14 months, the Inland American Real Estate Trust plans to dish out $1.2 billion to acquire an 80% stake in the REIT. Inland will use the investment to buy $2.7 billion in retail real estate.

In a recent SEC document filed by Inland and obtained by GlobeSt.com, the company says it expects to use the SBC property as collateral in future loan acquisitions. The company does not intend to make significant repairs to the property; however, “the tenant would be obligated to pay a substantial portion of any monies spent pursuant to provisions in their respective lease,” the filing states.

SBC Services Inc. is the sole tenant in the complex, paying approximately $22.7 million for the first year’s rent. Under the lease requirements, SBC will pay base annual rent on a monthly basis throughout the next 11 years. Inland American Real Estate Trust Inc. is sponsored by an affiliate of the Inland Real Estate Group of Cos. Inc., which comprises independent real estate investment and financial companies doing business nationwide.

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?


© 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.


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.