With the 110,000-sf Prairie Stone Commons in Hoffman Estates, acquired earlier this year for $16.5 million, Younan Properties will own 409,000 sf of Northwest suburban office space. Believing the submarket is "oversold," chairman and chief executive officer Zaya S. Younan hopes to increase his holdings here to one million sf.
"We have been monitoring Chicago's Northwest office markets for the past two years," Younan says. "We believe this is the best time to acquire good quality assets and position ourselves for a great turn-around, which we predict in the next six to 12 months."
On the other hand, the time is right for Seattle-based Kennedy Associates to shed the seven-story One North Arlington at Route 53 and Dundee Road, which is 96% occupied. The tenant roster includes State Farm Insurance Co. and AMCOL International, who have been in the building since its 1986 opening.
Likewise, San Mateo, CA-based Glenborough Realty Trust is selling its seven-story, 19-year-old building across the street from Motorola's headquarters along the Northwest Tollway. However, occupancy there is just 75%, with ConAgra, Bakemark Ingredients, Tellabs and Bechtel Corp. among the tenants.
"The Schaumburg area is expected to show strong recovery going forward and is home to the corporate and regional headquarters of many Fortune 500 companies," Younan says. He expects to close on Embassy Plaza this month, while One North Arlington will enter his company's portfolio by the end of the year.
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