Zeller Realty Makes Its First Post-Recession Suburban Acquisition

10 North Martingdale, part of the Woodfield Preserve Office Center in Schaumburg. Zeller Realty is buying the complex for $74M.
CoStar

Zeller Realty has agreed to purchase Woodfield Preserve Office Center, a 647k SF office complex in Schaumburg, from KBS REIT for $74M. It's Zeller's first post-recession suburban real estate play and it comes at a bargain price; KBS paid $137M for the property in 2007.

Zeller is getting the buildings as the suburbs continue to rebound. The complex at 10 North Martingdale Road and 20 North Martingdale Road is 89% leased but Zeller will face an immediate challenge to keep tenants. American Chartered Bank leases 52k SF at 20 North Martingdale, but the bank was acquired by MB Financial and is expected to leave when its lease expires in November, according to Crain's.

Suburban office assets have become a hot commodity for developers seeking higher potential returns after a record year for downtown sales volume. Zeller's play is the third office acquisition over $70M in the past month. Fulcrum Asset Advisors bought a three-building portfolio in Deerfield from John Buck Co for $80M, while Equus Group acquired Mid America Plaza in Oak Brook in an $80M deal. [Crain's]

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