Premier Building in Chicago Suburbs Purchased
On July 25, 2005, Falcon Real Estate purchased Highland Landmark I, a multi-tenant office building located in Downers Grove, Illinois. This is an eight-story structure containing 276,461 square feet (25,600 square meters) and resting on a landsite of approximately 9.75 acres. There is parking for 1,011 automobiles in a two-level parking garage having direct access to the building's concourse level.
Highland Landmark I is located in the Highland Landmark Business Park, a 46-acre office development situated along Interstate Highway 88 about 25 miles west of downtown Chicago. The building is in the East-West Corridor and is part of the Oak Brook submarket, one of the largest and most important suburban markets in the Chicago metropolitan area.
Two tenants occupy 81% of Highland Landmark I, and four other tenants occupy the balance of the building. R. R. Donnelley & Sons, a pre-eminent global printing company, leases 57% of the building through October 2012, and Perseco leases 24% through May 2013. Perseco provides supply-chain management worldwide to companies such as McDonald's Corporation and Coca Cola.
The building was purchased at a price of $67 million to provide a going-in capitalization rate of 6.5%. Mortgage financing was provided by JP Morgan Chase.
Laurence Dooley, Falcon's acquisitions representative based in Chicago, commented, "We are very pleased to have been successful in acquiring this property. It has all of the characteristics for which our client was looking – a first rate property, in an excellent location and with very high quality tenants. We look forward to making additional acquisitions in the Chicago area in the near future."