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GEM Realty venture buys majority of Evanston office tower for $91M: report

Investcorp cashing out of Orrington Plaza, Golub to retain its stake

Orrington Plaza in Evanston
Orrington Plaza in Evanston (Credit: Golub)

A venture of Chicago-based GEM Realty reportedly has agreed to buy a majority stake in a 20-story Evanston tower from Investcorp.

Financial terms were unclear, but the deal values the Orrington Plaza at $91 million, according to Real Estate Alert, which first reported the news.

At $268 per square foot, the deal would generate a big profit for New York-based Investcorp, which joined with Chicago-based investor Golub to pay $61.5 million in 2013 for the 339,000-square-foot property at 1603 Orrington Avenue, according to Crain’s.

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Investcorp and Golub financed the acquisition with a $42.4 million loan, Cook County property records show. Golub will retain its stake in the building and continue to manage it, sources said. The building is almost fully occupied by 31 tenants, led by hedge fund Magnetar Capital, which has 71,000 square feet, according to a marketing flyer from real estate brokerage CBRE.

Another venture controlled by Golub previously bought the building for $54.5 million in 2006, or about a quarter more than it paid for it in 2002.

Investcorp sold the 398-room Marriott Schaumburg hotel for $35.5 million in February and the 11-building Oak Creek Center office complex around the same time for $32 million. It owned Oak Creek through another joint venture with Golub. [Crain’s]John O’Brien

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