The Olympian Office Center located at 4343 Commerce Court in Lisle, IL, was acquired through a short sale.
CHICAGO—The Missner Group has just acquired the Olympian Office Center located at 4343 Commerce Court in suburban Lisle through a short sale from Riverview Realty Partners. Formerly the headquarters of Porsche Cars North America, the center represents the largest office acquisition to-date for Missner. But the 168,000 square foot, seven-story office property also fits in very well with the company's overall strategy.
“We invest in value-add properties,” Ed Adler, executive vice president of Missner, tells GlobeSt.com. “And we saw a very high value-add component here.”
For one thing, building occupancy currently sits at 30% with major tenants including the FBI and law firm Hinshaw & Culbertson. And the company bought the property at a price below replacement value. In fact, Missner bought it for an amount that Adler believes was roughly equal to its land value.
That puts the company in an excellent position to finish upgrading the property, add more amenities and complete a lease up. The previous owner had paid a great deal for the building, and struggled to fill it, Adler adds. “They had a lot of activity, but unfortunately they just couldn't pull the trigger on any deals.” Colliers International will say on to handle the leasing, this time “without their hands tied behind their backs.”
However, “the previous owner did a great job maintaining the building.” It already has a new fitness center with locker room, a conference facility, outdoor balconies, and a lunchroom with cafeteria service. “We're going to have the amenities of a class A building, but for the price of a class B.”
Constructed in 1987 and situated on 7.4 acres, the Olympian Office Center is located 25 miles west of Chicago. The multi-tenant property also features more than 400 feet of frontage along I-88, a seven-story glass atrium, on-site property management, 25 covered parking spaces and 521 uncovered spaces.
Adler expects it to attract many potential tenants. “The immediate area does not have a lot of space available in large blocks.”
The Lisle-Naperville market has recently seen a number of small- to mid-sized firms expand, and this has helped drive absorption and push down its vacancy rate, according to Colliers. In the first half of the year, tenants absorbed another 123,302 square feet, and rents have gone from $19.94 to $20.40 in the past year.
The end of the recession and eventual recovery of the local office market means investors will find it difficult to secure deals like the one for the Olympian Office Center. “Years ago, there were a lot of zombie buildings out there,” says Adler, “but now these opportunities are few and far between.”
Adler led the acquisition for the firm. Paul Lundstedt, Dan Deuter, Tom Sitz and Cody Hundertmark of CBRE represented the seller.
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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.
