In September 2014, M & J Wilkow closed on the acquisition of the 701 East 22nd Street Office Building in Lombard, Illinois (the "701 Building") as part of a joint venture with DRA Advisors LLC. The 701 Building is a 174,000 square foot, Class A, suburban Chicago office building located just north of I-88 in the Eastern East/West Corridor submarket of Chicago. The four-story property was constructed in 1980 and is currently 82% leased.
Additional improvements are planned to upgrade the building's atrium lobby and fitness center, as well as to better position the 31,000 square feet of currently available space for lease. The 701 Building will be managed by M & J Wilkow Properties, LLC, whose on-site management office will be staffed by a General Manager, Matthew Watne, CPM and leased by Jones Lang LaSalle's experienced team of Jeff Shay, Steve Flachbart and Matt Hickey.
Offering an attractive package of "best in class" amenities, including a renovated modern lobby, a full-size auditorium, a conference room, a fitness center and a deli, the 701 Building has consistently maintained high occupancy levels through all economic cycles and, currently, serves as the corporate or regional headquarters for five outstanding companies.
With suburban office properties remaining out of favor within the real estate investment community, the acquisition of the 701 Building represents a bit of a "contrarian" play. However, as yields on CBD office properties have continued to slide as a result of a surge in investment capital's interest, the 701 Building represents an appealing combination of strong in-place cash flows and value creation opportunities through lease-up of available space.