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NAPERVILLE, IL-Quarter Circle Capital LLC, based in Omaha, has acquired Park Place Office Complex, at 1755 Park Place and 1717 Park Place. The sales price was $12 million. The seller was not disclosed but was a lender for a defaulted first mortgage, says James Puckett, chief executive officer of Quarter Circle. The buildings were acquired on behalf of Quarter Circle’s managed fund, QCC Fund I. A cap rate was not disclosed.

The buildings, which were constructed in 1986 and 1988, are each four stories and have a total of 145,000 sf of office space. The complex is currently 54% occupied. Major tenants in the building include Omnicare Inc., which is the largest tenant in the building, and Pugmarks, Puckett says. The asking lease rate for the market is about $20 per sf, gross, which will be about the asking lease rate for the building. “We generally look hard at the market and try to be at or below” the asking lease rate, Puckett says. Dan O’Neill, with Oak Brook-based NAI Hiffman Asset Management, is the leasing agent for the buildings.

The occupancy rate for the East/West Corridor submarket is about 90%, Puckett says. The Park Place Office Complex currently has a low occupancy rate which is due to the prior owner not having enough capital to maintain and lease the building as opposed to problems with the buildings, he says. Quarter Circle plans on spending $4 million on capital improvements and leasing costs, such as tenant improvement packages and leasing commissions, says Starr Schulke, chief investment officer of Quarter Circle. The funds will also be spent on some deferred maintenance such as parking lot landscaping improvements and repairs to the heating, ventilation and air conditioning system, Schulke says.

Quarter Circle focuses on properties that are “sound real estate” but have “capital stress,” Puckett says. The firm acquires properties ranging from $5 million to $25 million. Quarter Circle plans to hold the Park Place Office Complex for two to five years, Schulke says.

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