Anatomy of a Northbrook Deal
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|The Northbrook office complex is 31% vacant. So what does The Davis Companies of Boston see in it? An opportunity for value creation, says EVP Duncan Gilky. The company recently purchased the two-building, 188k SF Edens Corporate Center at 630 and 650 Dundee Rd, and it plans to invest $2M in renovations. They hope that, coupled with an aggressive leasing program, will attract a good mix of new tenants and bring the vacancy rate down to 10% or less. That means rent growth, which adds value to the property.|
|TDC purchased the note and then secured the title through a deed-in-lieu-of-foreclosure process. Duncan says TDC likes Northbrook because it's a strong market with established businesses. The complex, meanwhile, is well-located near the Edens Expressway and Skokie Boulevard. The buildings, Duncan says, have good bones. He plans to boost the asset's value by creating a new landscaped courtyard between the two buildings and upgrading the common areas, restrooms, the cafe and conference facilities. TDC—which has focused mostly on East Coast markets—has been in Chicagoland since ’10, when it acquired The Crossings at Oak Brook.|