Chicago, IL

Axial identified this potential opportunity through a long-standing relationship and was able to negotiate an off-market deal to secure the asset. The property suffered lower occupancy and decreased cash flows during the recession and ultimately ended up back in the hands of a loan servicer. New tenants had been identified, leases executed, and construction underway on enough space to bring the property back to 87% leased at the time of our acquisition. Axial was able to purchase the property at a value well below replacement cost, as well as negotiating for the seller to handle all outstanding lease transaction costs. By adding and upgrading amenities not often found in suburban properties of this size (fitness center, cafeteria and game room, underground parking, and over-sized building conference rooms), as well as creating value through filling the remaining vacant space, the investment is expected to provide value-add returns upon disposition. Flexible debt was secured on the asset, allowing for an exit to occur at the point of highest value when market conditions and occupancy positions are favorable