Interra Realty recently closed on a $7.25 million office building at 1025 W Sunnyside Ave. in Chicago’s Uptown neighborhood, the company said Wednesday.
Jon Morgan, managing principal at Interra, represented the seller, Chicago-based Cedar Street. The deal had a targeted cap rate, or first-year rate of return, of 6.5 percent.
The three-story loft office and retail building is fully leased and is the first acquisition by Resource, a real estate investment trust seeking to expand its portfolio with a focus on creative office properties.
After purchasing the property in 2012 for $1.2 million, Cedar Street made substantial upgrades; its total investment is just over $5 million including rehab and leasing costs.
“The purchaser was drawn to this investment because of the stable, long-term tenancy and the fact that the building was completely rehabbed down to the shell,” said Jason St. John, managing partner at Greenstone Partners, the firm that represented the buyer. “This creative office building is truly ‘best-in-class’ in the submarket and most of the office buildings in Uptown have been eliminated or converted to apartment buildings.”
Original Article: REJournals.com