CBRE Arranges Sale of Suburban Office Property

CBRE has arranged the sale of a 116,500 square foot office building located at 2100 Norman Drive in Waukegan, Illinois. The property is long-term, net-leased to UCC Environmental, a leading provider of engineered, turnkey environmental solutions for power generation and industrial applications worldwide. Woodlark Investments, LLC sold the property to a partnership of ICP Funds and Fulcrum Asset Advisors in a transaction that closed April 24, 2023. A sale price was not disclosed.

CBRE’s Gary Nussbaum and Maury Vanden Eykel represented the seller, Woodlark Investments, LLC, in the transaction.

Built in 1989 as a build-to-suit for UCC Environmental, the property is situated on an expansive 7.75-acre site midway between downtown Chicago and Milwaukee and is comprised of thoughtfully designed headquarters office spaces in addition to mission critical light industrial, laboratory, and showroom spaces.

“Investors were attracted to a combination of the tenant’s solid credit-profile, its long-term commitment to the property, and the mission critical light industrial and testing areas,” said Nussbaum.

“As the year progresses, easing inflation amid a slowing economy will undoubtedly support an increase in net lease investments as they are deemed safer, less risky territory when coupled with long-term leases and attractive tenant profiles,” added Vanden Eykel.

“The new building ownership will be good for both UCC and Fulcrum ICP as both organizations are envisioned to be committed to this property for the long term. We would like to express our appreciation for the exceptional service provided by the CBRE team, who made this transaction a success despite the challenges in the current market. This was truly a win for all the parties involved, and we look forward to a bright future for the property owners and tenant.” said Doug Basler of Woodlark Investments.

“The UCC deal is an important addition to the growing number of stabilized industrial and suburban office properties that make up the ICP portfolio. It is also a testament to the importance of the Chicagoland market, where we hope to consolidate our presence.” said Horacio Garza of ICP Funds.

According to a CBRE Research report, Chicago posted the second-highest total of net lease transaction volume in the country for 2022, trailing only Los Angeles.