RREEF Property Trust, Inc. has acquired the 94,233 square foot office building on 8.05 acres at 9022 Heritage Parkway in Woodridge, IL for $13.3 million in cash, exclusive of closing costs.
The seller was 9022 Heritage Parkway, LLC, an affiliate of Oak Realty Group, Inc.
The two-story office building is at the interchange of Interstate 55 and Lemont Road in the Eastern East-West Corridor of the Chicago suburban office market, the largest of the metro’s suburban submarkets.
The property is 100 percent leased to Allstate Insurance Company, a subsidiary of The Allstate Corporation (NYSE:ALL).
9022 Heritage Parkway was constructed in 2002 as a build-to-suit for Allstate, which utilizes the building as a claims center for the southwestern areas of the Chicago MSA. Allstate has leased 100% of 9022 Heritage Parkway since 2002, when Allstate consolidated five locations into the property. The property is one of Allstate’s three rapid response natural disaster locations in the United States.
Allstate is responsible for the payment of base rent and all of the property’s operating expenses.
On July 31, 2012, Allstate executed a six-year, four-month lease renewal through November 30, 2018. The lease provides for one five-year renewal option. The current base rent per year is $1,107,482, or $11.75 per square foot, increasing to $1,148,944 or $12.19 per square foot on August 1, 2013, with approximately 3.6% increases per year thereafter.
Allstate self-manages operations at the property and has engaged CBRE, through its national account, as its facilities manager. Jones Lang LaSalle is responsible for property management oversight and accounting.
The acquisition of 9022 Heritage Parkway was funded through a combination of proceeds from RREEF’s public offering and borrowings under its line of credit. The firm borrowed $6.7 million under its line of credit with Regions Bank.
Initially, the loan bears interest at a variable rate equal to the adjusted British Bankers Association LIBOR Rate plus 2.20%, payable monthly.