BALTIMORE--(BUSINESS WIRE)--A joint venture organized by Alex. Brown Realty, Inc. (ABR) and Ameritus, LLC announce the acquisition of The Hastings Center office building located within Chicago’s Illinois Medical District. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $5.2 million in the joint venture.
Originally constructed in 1942 as the office component of a larger industrial facility, The Hastings Center contains a total of 150,815 sf and is currently 90% occupied. The four-story building features classic loft/office elements such as 15’ ceilings, exposed ductwork, open floor plates and 10’ windows. Additionally, the project provides extensive tenant parking – a highly desirable amenity for downtown Chicago office properties.
The business plan contemplates renovating the building to create a more convenient and attractive entrance/lobby, further enhancing the building’s parking ratio, and curing deferred maintenance. “We were able to acquire the asset at a favorable discount to replacement cost and comparable trades,” said Tom Burton, ABR’s chief investment officer. “The attractive pricing will allow for healthy operating cash flow during the renovation period,” added Burton.
“We like the strong market dynamics occurring within the IMD and near west-side of Chicago and look forward to working with Ameritus,” said John Prugh, president and CEO of ABR.
Alex. Brown Realty, Inc. (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Ameritus, LLC is a Chicago-based commercial real estate investment firm founded in 1999. The firm invests in and operates commercial real estate with a focus on the greater Chicago marketplace, and serves as the local operating partner to institutional investors, private equity firms, and high net worth individuals. www.askameritus.com