A Shot in the Arm for Suburban Office

Say “aloha” to Select Income REIT (SIR). While the single-tenant net-lease REIT does most of its deals in Oahu, mainland properties with long-term value are always on its radar. The REIT just paid $187.5M (8.7% cap rate) for the 820k SF 1415 W Diehl Rd in Naperville, a five-story, Class A office property. The transaction was a sale/leaseback with Tellabs, which signed a new 15-year lease at the property as its corporate HQ. SIR prez and COO David Blackman calls Naperville an ideal market, citing its frequent appearance on best places to live lists, growth, and easy access to Chicago.

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