The property represents the firm’s first investment in Illinois, although it does manage a property in Skokie, IL, on behalf of another owner. “The fact that we already have a presence through our third-party management made it a lot easier to transition into the market from ownership side,” Kayle says.

Pereira adds: “This is a good quality, B asset in a decent submarket right by Fox Valley Mall. We felt that we’d be able to implement our smaller tenant model in that market and be able to gain some traction. We bought the building at a low enough basis it was a good deal for us.”

Boxer competed with other potential buyers to acquire Park on the Bayou, which was formerly occupied by the Federal Bureau of Investigation (FBI) for more than 16 years. The property, which offers a campus-like setting with views of downtown, also includes a five-story, 486-space parking garage.

Rusty Tamlyn and Trent Agnew in HFF’s local office marketed the property on behalf of the seller, ING Clarion Partners, the investment management arm of ING Real Estate Investment Management.

“I am not sure there were a tremendous number of buyers looking at the building because it needs to have a group like us to turn it around and lease it up or an owner with a single-tenant in hand to backfill it,” Pereira tells GlobeSt.com. He says Boxer has already signed two leases totaling about 5,000 square feet for Park on the Bayou.

Kayle says Boxer will spend several million dollars to update and update both buildings, as well as re-tenant them. “We have a really good understanding of what it will take to stabilize the building and how to do that economically,” he contends. “The acquisition price is the ticket for admission rather than the final number. You can easily spend an amount to fill the building that is equal to the purchase price of it.”