The hand-off was made in the "vicinity" of but "less than $100 million," says Bill Rogalla, senior vice president and acquisitions director for Newport Beach, CA-based KBS Realty Advisors. He represented KBS Realty Advisors in the transaction. Michel Caprile and Bill Novelli, with CB Richard Ellis, represented the San Francisco-headquartered seller.
The two adjoining class A 10-story office buildings, each with a six-story glass atrium, were constructed in 1985 in the Eastern East/West Corridor submarket of DuPage County. "It was a great opportunity to acquire a trophy asset in a continuing tightening submarket," Rogalla says.
KBS Realty Advisors felt the buildings were desirable assets because of "the architecture and the stature of the granite-clad buildings," Rogalla adds. "It is a highly regarded and kind of a landmark building." The Mid America complex sits at a preeminent intersection--Route 83 and 22nd Street--plus it abuts the Oak Brook Center shopping center.
Mid America Plaza I and II, totaling 407,263 sf of rentable space, are more than 90% leased. Rogalla would not disclose the average or asking lease rates for the buildings. KBS Realty Advisors also was attracted to "the stability of the rent roll and the chance to also add some value to the property with leasing up existing vacancy," Rogalla says. There are no renovations planned for the property at this time.
With the acquisition, KBS Realty Advisors now owns about 2.2 million sf in the Chicago region. "Each asset is valued annually on a case-by-case basis. We envision a short- to medium-term hold," Rogalla says about the newest piece for the portfolio.
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