Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a Class A, 50,000-square-foot life science healthcare office building in the western Chicago suburb of Itasca, Illinois. The property is located at 870 North Arlington Heights Road and is fully leased by a publicly traded NASDAQ company. The organization is a pioneer in the healthcare services industry. Stan Johnson Company’s John Zimmerman and Craig Tomlinson represented the seller, a regional developer. The winning bidder, a private group focused on single-tenant acquisitions, purchased the asset for $20.6 million. The cap rate was not disclosed.
“This pre-leased, build-to-suit project was already under construction when COVID-19 hit. Many institutional and private investors simply put a freeze on office acquisitions as the work from home trend became the new normal,” said Zimmerman, a Director at Stan Johnson Company that specializes in office and industrial property types. “Despite these headwinds, we were able to effectively market the property, generate an array of offers that were within or above our initial pricing guidance, and identify our top buyers quickly. Ultimately, we went from contract to close within 60 days, navigating due diligence and closing without any material changes to the original contract terms.”
The single-story healthcare building sits on 6.1 acres and features a mixture of traditional office space with compounding and specialty pharmacy spaces, walk-in freezer/coolers, and clean rooms. Construction was completed in August 2020. The tenant operates under a new 15-year net lease with annual rent increases. The property is located just west of Cook County in DuPage County, minutes from O’Hare International Airport.