Suburban Office Complex for Sale Near Chicago

Thursday, July 20, 2017

Update:  HFF announced the sale and acquisition financing of this property on January 11, 2018. For a listing of current avialble commercial real estate investment sales listings, please click here.

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale Central Park of Lisle, a trophy office complex located in the prestigious western suburbs of Chicago in Lisle, Illinois. Prominently situated adjacent to the interchange of U.S. Interstate 88 and Naperville Road, the office property for sale comprises two buildings totaling 656,301 rentable square feet (RSF) in addition to a land parcel. The property features an enviable roster of 32 office tenants consisting of world renowned corporations, publicly traded companies and headquarters operations befitting a trophy office complex such as Central Park of Lisle. 

Central Park of Lisle is situated at 4225 Naperville Road and 3333 Warrenville road at the approximate boundary of Naperville and Lisle, two of the Chicago's most desirable suburbs for working, shopping and living. Respectively named to Money Magazine’s prestigious “Best Places to Live in America” list, Naperville and Lisle offer picturesque public spaces, a wide range of executive and affordable housing stock, prime connectivity and plentiful retail amenities. Central Park of Lisle is conveniently situated nearly equidistant from downtown Naperville and downtown Lisle, providing tenants easy access to the combined offerings of both prestigious communities. Additionally, the suburban office complex for sale is located in the East-West Corridor submarket, which contains the highest concentration of suburban office space in Chicago. As the largest suburban submarket, the East-West Corridor is often bifurcated into eastern and western halves with Interstate 355 serving as the approximate boundary line.

Included in the offering is Central Park of Lisle Phase III, an approximately 7.5-acre land parcel prominently situated adjacent to Interstate 88 and the existing Central Park of Lisle office development. The site’s highly-desirable location offers prime visibility from Interstate 88 and is zoned for Office Research & Planned Unit Development. Central Park of Lisle Phase III provides investors the ability to accommodate growing office tenant demand well into the future as well as near term single tenant build-to-suit requirements. Alternative complementary uses may also include restaurants, hotels, data processing centers, medical research and clinics and laboratories.

The commercial property for sale is currently 86 percent leased with 6.5 years of remaining weighted average lease term (WALT). The property features an impressive rent roll with more than 40 percent of the occupied office RSF leased to credit tenants, including three of the complex’s five anchor tenants, which in total represent more than 45 percent of the total RSF and eight years of WALT. Central Park of Lisle offers investors a core-plus investment profile with value-add return profile and strong cash-on-cash yields.

Suburban Office Property for Sale Investment Highlights

  • Fully Amenitized Property:  Central Park of Lisle offers tenants an unparalleled suite of on-site amenities unique even among the competitive set. These distinctive and highly-desirable amenities help to position the property as a best-of-the-best asset in the market. On-site amenities include Central Park Athletic Club; Bright Horizons at Lisle child care and early education center; Foodbarz!, a full-service cafeteria; conference facility; and executive parking.
  • Institutionally Maintained Trophy Asset:  Central Park of Lisle provides investors the opportunity to join a prestigious group of historical owners that have meticulously maintained the property since completion. As a true best-of-the-best trophy office complex, Central Park of Lisle attracts the highest caliber of both occupants and investors. The property’s premier location adjacent to the popular stretch of U.S. Interstate 88 often referred to as the Corporate Corridor, unrivaled offering of on-site amenities and professional setting are best suited for any global corporate headquarters location. Prior ownership has continually strengthened Central Park of Lisle’s highly-competitive position in the marketplace through institutional-quality maintenance programs committing over $3.7 million of investment into the property since 2010.
  • Premier Rent Growth:  Simultaneous with Central Park of Lisle’s unbridled leasing velocity, the office complex has continued to command increasingly impressive prime market rents, demonstrating remarkable rent growth since the recession at over 5.4 percent annual growth during the period from 2011 through 2016. The property’s ability to command best-of-the-best rents have earned Central Park of Lisle a position as the market leading asset of the East-West Corridor. Central Park of Lisle achieves the highest rental rates across the market, serving as a case study for how investors are able to consistently push rental rates at best-of-the-best properties.
  • Substantial Discount to Replacement Cost:  Central Park of Lisle offers investors the opportunity to acquire a premier Class A office complex at a significant discount to replacement cost, providing a competitive basis for years to come. With ample supply of non-competitive big block space, increasingly difficult financing terms and rising replacement costs, the lack of new multi-tenant construction experienced throughout the current cycle is projected into the foreseeable future, protecting Central Park of Lisle’s position as a best-of-the-best market leading asset. Due to increasing construction costs as well as demand for significant parking ratios, market replacement costs are projected in excess of $360 per RSF. Accordingly, required replacement rents would fall in the range of $48 gross per RSF, while market leading Central Park of Lisle rents are offered at over a 34 percent discount. This substantial markup to current premier Class A office market rates provides investors the potential to remain competitive in the marketplace while continuing to push rents.

For more information on Central Park of Lisle or other office properties for sale in the Chicago area, please contact Bryan Rosenberg or Patrick Shields in HFF’s Chicago office. For financing inquiries, please contact Christopher Carroll or Trent Niederberger. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

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