The Denver office of LaSalle Bank arranged acquisition and redevelopment financing. In addition to the planned renovations, the joint venture has hired U.S. Equities Realty to oversee construction during the first quarter, then provide property management and leasing of the repositioned asset. "Though previously used as a corporate facility, the complex can readily be reconfigured and repositioned as a class-A, multiple-tenant office campus," says Lowe Enterprises vice president of acquisition Tim Schlichting.

The joint venture is buying into the beleaguered suburban Chicago office market as overall vacancy including sublease space stands at 17.5%, down 1.5 percentage points from a year ago, according to Trammell Crow Co. However, the north suburban submarket is the healthiest with a 13% vacancy, down a full point during the last year, according to Trammell Crow Co.'s most recent market report.

"We have identified Chicago and its suburbs as a prime target for commercial real estate acquisitions," Schlichting says.