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Chicago Investor Continues Bet on Suburban Office Recovery
A venture of Chicago-based BA Investment Advisors is under contract to pay nearly $40 million for the Pointe O’Hare office building in Rosemont, IL, reported Crain’s Chicago Business. If the sale is completed, it would be the fourth Chicago suburban office acquisition BA has made in the past two years, continuing its bet on recovery in the sector.
It’s a wager that not many investors have made, Crain’s reported. The pandemic and the ensuing trend toward remote work have taken their toll on suburban office properties. Pointe O’Hare, which Blackstone acquired from GE Capital as part of a $3.3-billion portfolio in 2015, is now one-third vacant.
However, data from JLL show that office move-ins outpaced move-outs in the suburbs during the second quarter, reversing a trend that began in 2019. Moreover, Class A properties such as Pointe O’Hare have an advantage in terms of attracting tenants in the current market.
- ◦Sale/Acquisition
