While closing on the acquisition, GE "simultaneously" sold oneof the properties to Keystone, says Greg Bates, managing directorof direct investments for GE. Keystone purchased the three buildingBannockburn Lakes property at 2201-2333 Waukegan Rd. inBannockburn. A sales price was not disclosed.

"We see Chicago on an upward trend and we like some of thefundamentals that are happening in the submarkets," Bates says. "Wethink that EOP had pulled together a portfolio of some of thepremier assets in some of the best submarkets." Bates believes theproperties "will probably outperform the broader Chicago marketover the coming years." The acquisition included a total of 21buildings in the East-West Corridor submarket of Cook County, inthe Central North submarket of Lake County and the O'Hare submarketof Cook County. The properties in the East-West Corridor submarketinclude the five-building Westbrook Corporate Center at 1 WestbrookCorporate in Westchester; the two-building Oakbrook Terrace at 1Tower Lane and One Lincoln Centre at 18 W 140 Butterfield Rd. inOakbrook Terrace; and the three-building Commerce Plaza at 2001Spring Rd. and the property at 1111 W. 22nd St. in Oak Brook.Besides Bannockburn Lakes, the properties in the Central Northsubmarket include Corporate 500 at 500 Lake Cook Rd. and OneParkway North at One Parkway North, both in Deerfield. PointeO'Hare at 9550 W. Higgins Rd. in Rosemont is the O'Hare submarketproperty.

The portfolio is 87% occupied. "Typically, I think the portfoliohas about 11% below market rents," Bates says. "And, there is about50% rollover in the next five years so we think there will be agood opportunity to push rents and improve the tenant experiencethere." CB Richard Ellis will do the leasing and propertymanagement for the portfolio. There will be some "operational andphysical improvements to the common areas" but major renovationsare not needed for the buildings. "Primarily, it is going to bebringing in new tenants, focusing on leasing and focusing on theexisting tenant experience to ensure we have high renewal rates,"Bates says.