Investments:Dublin-based Barrington Capital Ltd has bought an office building in Chicago, Illinois for €19.48 million.
The deal, undertaken for an international client, is another large investment transaction for Barrington Capital Partners LLC, which has been involved in deals worth more than €1.2 billion over the last 10 years on behalf of both US and international clients.
Barrington Capital Ltd is a joint venture backed by Barrington Capital Partners LLC of Boston. Several weeks ago the Dublin affiliate announced a new €20 million US commercial property fund aimed at Irish investors. The company plans to invest in high potential commercial developments in key US markets, including Washington DC, Atlanta, Chicago, Miami and New Jersey.
The Chicago property purchaser is the Mariner American Property Income Trust (MAPIT), which is based in Australia. In 2005, Barrington Capital Partners helped to set-up MAPIT, which is now worth over €240 million.
It bought the Higgins Centre near Chicago, Illinois, a six-storey, multi-tenant Class A office building with a net lettable area of 12,674sq m (136,417sq ft). The property is located near Chicago's O'Hare airport, and is close to main highway interchanges. An unusual extra feature is that it includes 100 per cent ownership of two, double-sided, illuminated 20ft by 60ft billboard signs.
The company is bullish about the new Irish fund, stating it is expected to deliver yields over 6 per cent - or twice the typical yield for Irish commercial property - and a minimum of 13 per cent to 15 per cent annual internal rate of return over the seven-year term of the investment.
The fund is being put together specifically to target opportunities in the US, according to Liam Kiely, director of Barrington Capital Ltd. "This is an excellent time to invest in US commercial property. The euro is strong against the dollar, US interest rates are expected to level off or decline and the US economy - the most resilient and dynamic in the world - is poised for strong growth over the next few years," he stated.
Irish investors are already involved in the US, with deals including properties such as 265 Franklin Street in Boston, which sold to a group of Irish investors for €136 million. More recent transactions include the €51.2 million purchase of a 2.2-acre acre site in Chicago by an Irish group, which plans to develop a €960 million skyscraper.
