CHICAGO-Wilton US Commercial Inc. has made its first acquisition, a 1920s-vintage office building located at 65 E. Wacker Place, and it has plans to make at least two more acquisitions this year.
The private REIT, funded by money from private Irish investors, bought the 220,000-square-foot office building from Private Bank for an undisclosed price. Local sources estimate the 24-story, boutique building traded for roughly $16 million.
The deal represents the culmination of the company’s two-and-a-half year search for a value-added property in the Chicago area. The REIT is advised by US Equities Realty LLC and two Irish firms, Wilton Capital Real Estate and Finnegan Menton Real Estate.
“Wilton US Commercial was launched two years ago to invest in value-added properties in the Chicago region,” says Camille Julmy, co-founder and vice chairman of US Equities. “We identified Chicago because it is under the radar for many foreign investors, but at the same time, offers very good opportunities. It is a great city with a financial base and a vibrant downtown. And it certainly is not as expensive as New York or San Francisco.”
Julmy tells GlobeSt.com that Wilton US Commercial had its eye on 65 E. Wacker Place for a while. “When it was put on the market by Private Bank, we were ready to move quickly,” he says, adding that the buyer paid all-cash for the deal. John Gavin and Dirk Riekse of Grubb & Ellis represented the seller.
Built in 1928, 65 E. Wacker Place offers views of the Chicago River to the north. The building is currently nearly 90% leased to tenants ranging from small businesses to law firms and non-profit organizations. Morton’s Steakhouse currently occupies the first two floors.
“We have the real potential to improve the operations of the building and create additional value,” Julmy says. “It has a great location and already provides good cash flow, but some of the leases are turning, and we think we’ll be able to achieve a higher occupancy, as well as rent bumps.”
US Equities Asset Management LLC will be the exclusive management, marketing and leasing agent for newly-acquired building.
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