Oakwood Worldwide, a leader in the temporary housing industry, has executed a master lease for the new, 42-story Chicago Loop luxury apartment building at the corner of Lake and Wells Streets owned by National's Real Estate Advisors, LLC and its partner, Midwest Property Group. The transaction greatly reduces the lease-up risk associated with the property, contributing to a reduction of risk in the Fund's portfolio.
The high-rise building, completed in October 2010, will be branded under the Oakwood name as Oakwood 200 Squared.
“The Oakwood master lease complements our asset management strategy quite well. It enables us to offer our investors guaranteed returns with minimal risk during the master lease term,” said Jay Javors, President of Midwest Property Group, Ltd. “From a landlord’s perspective, Oakwood’s 50-year history in multifamily and its position as the leader in corporate housing made them an ideal choice as a tenant for the building.”
Oakwood’s action comes as relocation executives are indicating a renewed confidence in the economy and as Chicago’s high-rise residential building boom has slowed.
Atlas Van Lines’ recent 44th Annual Corporate Relocation Survey of relocation managers indicates that 30 percent of companies plan to relocate workers this year, the highest percentage in six years, and that the Midwest is the top destination for transfers.
“Oakwood 200 Squared’s location in the Chicago Loop makes this a premier property that is in line with our objective of expanding our portfolio of high profile branded buildings to meet the growing demand of the corporate and relocation markets,” said Kristen Zimmerman, Vice President of Asset Development for Oakwood.
With a total of 329 studio, one- and two-bedroom furnished and unfurnished units, Oakwood 200 Squared is located in one of the city’s most vibrant neighborhoods, offering easy access to the financial district, government offices and major employers. It is within walking distance of public transportation and a diverse array of restaurants, galleries, shopping and entertainment activities.
Oakwood 200 Squared also offers many features and amenities designed to appeal to employees on long- and short-term assignments. Units feature spacious layouts, some with balconies, a full-size washer and dryer, well-appointed kitchens and floor-to-ceiling windows. Other hotel-like amenities include a concierge, 24-hour doorman and business center, and free Wi-Fi in common areas.
Lifestyle amenities include a full-length indoor swimming pool and fitness center with locker rooms, gas grills on the sundeck area and pet accommodations.
Designed to be eco-friendly, the smoke-free building includes Energy Star™ appliances, water saving plumbing fixtures, electric car chargers in the self-park garage, bike rental and storage, a green roof and pending LEED certification.
With 200 Squared expected to be a premier addition to Chicago housing market and Oakwood expecting strong corporate demand, the transaction reduces the risk to the Fund in the next several years.
Specializing in real estate investments on behalf of large institutional investors, National Real Estate Advisors, LLC (National) manages more than $1 billion of client capital. To learn more about National, please visit our website at www.natadvisors.com