Chicago, IL

Axial was attracted to this project in north suburban Chicago for several reasons. The building was 100% leased to two investment grade tenants, one that occupied three of four floors (“Tenant A”) and the other that occupied the top floor (“Tenant B”). While Tenant A has a long-term lease, Tenant B’s lease was of a shorter-term nature. Where many saw concerns with the near-term risk, we saw opportunity. In fact, with the buyer pool lessened due to perceived risk, along with our prior relationships with both the seller and the listing broker, we were able to acquire the asset at a very attractive cap rate and price per square foot basis. The current tenancy allows for stable cash flow while also providing an upside opportunity through potential tenant expansion accommodations. Axial was also attracted to the strong property fundamentals of over 5 stalls/1,000 sf parking ratio and large 50,000 sf floorplates (easily divisible via two building wings), both a scarcity in this north suburban submarket known as “Pharmaceutical Alley.”