CHICAGO—Beacon Investment Properties, LLC has just completed its $100 million purchase of 200 W. Monroe, a 23-story class A office tower in Chicago, from Monroe Acquisition, LLC. The purchase was part of a joint venture with Harel Insurance, Investments and Financial Services Ltd., of Tel Aviv.
Officials from the Florida-based Beacon say they purchased the 535,911-square-foot high-rise as a value-add investment opportunity. Rents in the 91% leased building are below market, and planned property enhancements, coupled with strong demand for flex space in the submarket, should spur occupancy and rent growth.
The transaction was brokered by Jeff Bramson and Jaime Fink, senior managing directors and Mark Katz, managing director in the Chicago office of HFF which represented Monroe Acquisition, LLC. Acquisition financing was arranged by Susan Hill, senior managing director and Chris Carroll, managing director of HFF, who secured a fixed-term loan through J.P. Morgan Securities LLC.
200 West Monroe is the fourth office building acquired by Beacon in the last six months. Previously, the company bought Park Plaza, a 210,774-square-foot office property in suburban Naperville for $24 million, 20 North Clark, a 35-story, 393,094-square-foot office tower in the Central Loop for $63.5 million and Riverwalk II, a 12-story, 258,855-square-foot office tower in suburban Buffalo Grove for $45 million. The four properties total 1,399,634-square-feet.
Furthermore, Beacon is “actively looking” for additional Loop and suburban Loop office properties, said Ariel Bentata, co-founder and managing partner for Beacon. “We are fortunate that Harel, with whom we've had a long and mutually productive partnership, shares our belief that Chicago's economic fundamentals create the best office property investment opportunities in the US.”
“Chicago's Metro area has one of the strongest net absorption rates of office properties in the country with 105,700 new office using jobs created in the last 30 months,” said Bentata.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
