CHICAGO—Younan Properties, Inc., an owner and manager of class A office buildings and retail centers, has decided to take a chance on another major suburban office property. The group just bought 300 N. Martingale in Schaumburg in an all-cash transaction. The 156,065-square-foot, seven-story office tower has been in foreclosure, but this did not dissuade the California-based firm.
“This was an exceptional opportunity to acquire an asset at a very attractive valuation in a submarket that is showing stability and future growth,” said Zaya S. Younan, chairman and chief executive officer. The company paid $6.14 million, according to Cook County records. Another group paid more than $16 million for the property back in 2006.
Through the first half of 2014, the Northwest suburban submarket saw 278,561-square-feet of positive absorption, according to Colliers. During the first half of 2013, the overall positive absorption was 231,071-square-feet. “Class A space showed the most improvement, ending the quarter with 18.2% vacancy compared to 19.6% posted in the second quarter of 2013.”
"Asset prices remain compressed vis-a-vis lease rates and continue to reflect a discounted valuation that will disappear as the economy continues to improve,” Younan added. “With significant financial resources at our disposal, a reputation as an experienced owner/manager and the ability to close deals quickly, we will continue to take advantage of opportunities such as 300 N. Martingale as we expand our portfolio in Chicago."
The company has been a significant suburban property owner. As reported in GlobeSt.com, the company bought Bannockburn Corporate Center, a class A property in north suburban Bannockburn, back in 2006, but the property ended up in foreclosure when the economy fell apart.
Joseph Stevens, Fred Ishler and Zach Fox of Transwestern will continue to lease 300 N. Martingale on behalf of Younan. According to Stevens, the property is well positioned for lease up in a steady, stabilizing market. "The acquisition by Younan Properties is a win-win for current and prospective tenants. The company has significant experience in this market and an operational infrastructure already in place. From our experience working with Younan Properties, the company will allocate financial resources both for broker incentives and for tenant improvements to increase occupancy faster than current market absorption. "
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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.
