Mariner American Property Income Trust has contracted to buy the multi-tenanted building 1700 Higgins Center in Illinois, Chicago for $US24.35 million.
This is MAPIT’S first acquisition in the Chicago metropolitan area and continues its strategy to diversify the location and the trust’s tenant profile.
The purchase price is at a discount to the $US25.10 million valuation and is expected to settle during this month.
The Higgins Center is a six level, multi-tenant Class A office building with a net lettable area of 136,417 sq ft (approximately 12,673 sqm) located on Higgins Road in Des Plaines, Illinois.
The property is located near O’Hare airport and close to the main highway interchanges.
Mariner Securities’ executive chairman Bill Ireland said the trust recently announced the acquisition of One Centennial Plaza, New Jersey, acquired on January 09 2007 and now the Higgins Center.
“These two multi-tenant acquisitions are consistent with the trust’s strategy, and will give our experienced US based management team the opportunity to take advantage of improving leasing markets and increase the value and income of the properties by actively managing the tenants and lease expiries,” he added.
Following the acquisition of Higgins Center and One Centennial, the portfolio of properties will have a weighted average lease expiry of 9.2 years.
The acquisition will be funded by a combination of senior and mezzanine debt.
The trust is on target to pay a distribution yield of 9.6% (on a 97c issue price) for the financial year ending 2007.
Australian Property Journal
