90 North Real Estate Partners (“90 North”) has completed its second U.S. acquisition, advising an international investor on the purchase of the Continental Automotive building, a Class A office building at 21440 W. Lake Cook Rd in Deer Park, a northwest suburban Chicago suburb. Financial terms of the transaction were not disclosed. The 351,425-square-foot building is being named The Reserve at Deer Park and is easily accessed off Route 53 and 12/Rand Road.
The Reserve at Deer Park, is a seven-story, 351,425-square-foot office building that sits within the 58-acre office campus. The building was developed in 2002 by Motorola and was later acquired by Continental AG as part of a business unit acquisition in 2006. It serves as the main US building for the Interior Division of Continental Automotive Systems, Inc.
“This is another tremendous opportunity for 90 North. It underscores the firm’s North American acquisition criteria,” said Daniel Cooper, Head of 90 North’s operations in North America. “This acquisition provides a significant opportunity to enter a top-tier real estate market with a stable asset that can be enhanced in value over time.”
Continental has leased more than 200,000 square feet (approximately 60 percent) of The Reserve—on a long-term basis for a full range of office and research uses. The remaining approximately 135,000 square feet of space representing the top three floors of the property will be marketed for lease in 2015 and represents an ideal opportunity for another large corporate tenant.
As part of this transaction, 90 North has selected NAI Hiffman’s Jason Streepy, Jason Wurtz and Michael Flynn as the exclusive marketing agents for the building. NAI is also providing property management services and manages and leases more than 56 million square feet in the Chicago area. At the core of 90 North’s and NAI’s strategy will be undertaking a repositioning effort to transition the building to multi-tenant use.
Among these initiatives are upgrades including a new stand-alone entrance for the new tenant; building common area enhancements; and a new parking lot, among other items. The building offers large and efficient floor plates of 45,000 square feet, along with a technology-rich 300-seat auditorium; a 500-person cafeteria; and a covered parking structure. Also, an additional 525,000 square feet of office space, spread over three buildings, is approved to be built on the 58-acre site.
According to Jason Streepy, Senior Vice President of NAI Hiffman, “The property is situated in the northernmost part of the northwest suburban office market, which is particularly attractive because of the low Lake County real estate taxes. The Reserve is ideally located for corporations requiring a strong workforce. Also, it is just off of Lake Cook Road and just west of Route 53 in Lake County, across from the Deer Park Town Center.”
The Deer Park Town Center is a 406,000-square-foot lifestyle center that features tenants such as Century Theatres, Barnes & Noble, Crate & Barrel, Gap, Pier 1 Imports, Restoration Hardware and Apple. The area is known for excellent amenities—shopping, dining and recreational offerings—and highly sought after residential communities, such as Deer Park, Long Grove, Hawthorn Woods, and Barrington, among others. Average household income in the area is approximately $125,000. Other residential communities such as Arlington Heights, Palatine, and Buffalo Grove are in close proximity and are a source of an excellent labor force for businesses at The Reserve.
90 North’s partner, Arzan Wealth (DIFC) Limited, a Dubai-based advisory firm regulated by the Dubai Financial Services Authority, acted as the Strategic Advisor on the structuring and acquisition of the property.
NOTES FOR EDITORS:
90 North was established by Founding Partners Philip Churchill and Nicholas Judd and has specialized in socially responsible investment, including Shariah compliant investment, for institutional and private investors. Dan Cooper, Head of North America and 90 North Partner leads efforts at their US headquarters in Chicago.
Since its inception, 90 North has closed on more than $750 million of real estate transactions. Notable investments in the UK include:
- A 1 million-square-foot core logistics distribution center in Germany to a Volkswagen affiliate;
- A 797-bed student housing portfolio in Canterbury, purchased for $70.9 million;
- A $66.5 million sale-leaseback containing 10 senior living care homes in East Midlands;
- A 136,000-square-foot office and industrial complex in Teal Park, Lincoln that houses Siemens gas turbine headquarters;
90 North Real Estate Partners
90 North is an independent investment advisory firm, specializing in socially responsible real estate investment, including Shariah compliant investing. The firm was co-founded by Philip Churchill and Nicholas Judd. Former BBC Dragons’ Den James Caan serves as Chairman of the firm. Churchill serves as the Managing Partner. The Founding Partners combine substantial property and other transactional experience, excellent track records with an absolute focus on property fundamentals to deliver superior risk adjusted returns and protect and enhance wealth.
Over the last decade, Churchill and Judd have completed a cumulative total of $2.0 billion worth of real estate transactions in Europe and the U.S.
Arzan Wealth is an investment advisory firm registered at the Dubai International Financial Centre (DIFC), and is regulated by the Dubai Financial Services Authority (DFSA). Arzan Wealth currently advises various clients on real estate, private equity and other investments worth a total of approximately $850 million. Arzan Wealth focuses on arranging yielding investments in major global markets, as well as bespoke investments that meet the requirements of specific clients.
Muhannad Abulhasan, CEO of Arzan Wealth commented:
“We are delighted to be partnering with 90 North again. This asset is expected to provide an attractive secure income stream, from only the 60% of the building, thus providing the consortium of investors with a clear value add opportunity by leasing additional space to enhance income and from development opportunities on the rest of the site.”
Dan Cooper (USA)/Nicholas Judd / Philip Churchill
US T: +1 (312) 636-4359
UK T: +44 20 7399 6753 / 6732
E: email@example.com / firstname.lastname@example.org / email@example.com
Nick Judd, Founder & Head of Investment at 90 North commented:
“This is another strategic acquisition for 90 North and one in which we are delighted to be partnering once again with Arzan Wealth. Following the opening of our Chicago office, 90 North continues to expand geographically, building on our track record in the UK and Europe. This takes recent transactions we have advised on in the US to circa $700,000,000 in total.”