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Blackstone shopping O’Hare office building

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New York-based private equity giants are looking for buyers looking to the bright future of suburban office buildings, despite the ongoing tendency of companies to embrace the rise of telecommuting and reduce their footprint. .. Since the beginning of the COVID-19 pandemic, 3 million square feet of office tenants have been lost in the suburbs and vacancy rates have risen. To a record high of 27% According to Jones Lang LaSalle data.

Pointe O’Hare is empty above average and leases only 66%, according to the flyer that makes up the 270,512 sq ft property as an opportunity to take advantage of recent building upgrades and lease the remaining available space. .. According to Kushman, Blackstone has invested $ 8.5 million since it acquired the building in 2015 as part of a $ 3.3 billion portfolio acquisition from GE Capital Real Estate. This includes building occupant office suites, fitness centers, conference centers, and 988 stall updates. parking.

Blackstone also backfilled some of the large vacancies left by Fifth Third Bank, which acquired the four floors of the building as part of its 2019 acquisition of MB Financial. MB previously took over its office block through the acquisition of Cole Taylor in 2014. Bank.

Cushman will serve as a “clear path to stabilization” for a 21-year-old property if buyers can fill a total of 52,000 square feet of vacant adjacent floor pairs, 20 percent points on building occupancy. Please note that you add. According to the leaflet, other tenants in the building include the Department of the Aviation Pilot Association, which represents United Airlines pilots, and Transnational Payments, a credit card processing company. More than two-thirds of the 18 tenants in the building come from the financial, insurance and real estate services sectors.

Other real estate companies are betting on a post-COVID recovery of suburban office buildings, despite record high vacancies and uncertain outlook for the entire office sector. New York-based group RMC recently Paid nearly $ 100 million For a series of office buildings in Downers Grove, all significantly updated by previous owners.And for more ambitious play, a New York-based sovereign partner Paid $ 24 million In January, we refurbished the former 27-story Gallagher headquarters at 2 Pierce Place in Aitaska.

Data from research firm MSCI Real Assets show that sales of suburban office properties nationwide in the first quarter increased 63% year-over-year.

Blackstone has sold other local real estate from GE Capital’s portfolio deal. This includes a 2018 sale of the 1.1 million square foot Westbrook Corporate Center in Westchester for $ 131 million and an eight-story building in Oak Brook’s 1111 W.22nd St. for nearly $ 42 million. ..

The rest of Blackstone’s suburban office portfolio is inferior to its most famous downtown real estate, Willis Tower. The company plans to host a ribbon-cut event this week, showing off over $ 500 million. Overhaul of the tallest tower in the city, A project started in 2017 after buying real estate for $ 1.3 billion two years ago.

Cushman & Wakefield brokers Dan Deuter and Paul Lundstedt are marketing Pointe O’Hare on behalf of Blackstone.

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