A JV of Walton Street Capital and GlenStar Properties bought four suburban office buildings for $27.45M, and hope to redevelop them into prime office space. The buildings are in the Bannockburn Lakes Office Plaza. At the time of closing, three of the buildings were in foreclosure; the fourth was completely vacant.
The buildings are at 2201, 2333, 2345 and 2355 Waukegan Rd and total 421k SF. The combined vacancy rate of the buildings is 53%. The 2201, 2333 and 2345 Waukegan buildings were bought from Wells Fargo Bank, which acquired the properties in a sheriff's sale last year. The 2355 Waukegan building was purchased from Lone Star Funds, which acquired the building as part of the $433M Columbia Property Trust sale in July.
The Walton Street/GlenStar JV hopes it can turn the buildings around like it did Continental Towers. That project was 40% vacant when the two purchased it in 2013. The vacancy rate is now under 9%. A deli, fitness spa and 8k SF amenity center is planned for 2345 Waukegan, along with new parking and landscaping.
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