X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-Younan Properties Inc., headquartered in Los Angeles, has sold 211 E. Ontario. The 172,000-sf office building was acquired by Northwestern Memorial Hospital. The sales price was $35.7 million.

The 18- story building, which is in the North Michigan Avenue submarket, was constructed in 1984. Younan Properties had renovated the common areas and lobby, did improvements to the lighting and “improved the image of the building,” says Zaya Younan, chairman and CEO of Younan Properties. “The building had a very nice makeover in the short time period that we owned that asset.” The estimated cost for the improvements was less than $1 million, Younan tells GlobeSt.com.

Younan purchased the building in May 2006 for approximately $23 million, Younan says. “We had acquired this asset two years ago, and we bought an asset that basically needed some occupancy improvement and some marketing repositioning,” he says. “We felt that we had added that value that we could have and we had a credible buyer who was interested to buy it…and the asset sold at a great price.” The building was sold in 2006 by Zeller Realty Group. The recent sale to Northwestern Memorial Hospital generated a total return to investors of approximately 105% and an internal rate of return of 51%.

The building is currently about 90% occupied, “but, naturally, has rollover in the rents,” Younan says. Northwestern Memorial Hospital “is planning to fill the building as space becomes available,” he says. Northwestern will use the space for physicians and administrative offices, he says. The property is within walking distance of the Northwestern University medical campus and hospital in addition to retail and restaurants. Earlier this year, the hospital leased 150,000-sf at the Time-Life building, 541 N. Fairbanks Ct.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.