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CHICAGO — A joint venture between American Recovery Property Trust (ARPT), an entity of Sovereign Capital Management Group, and Northwood Investors has acquired Congress Center, a Class A, 524,800-square-foot, 16-story office tower in downtown Chicago. The purchase price was $95 million.

Located at 525 W. Van Buren St. in the West Loop, Congress Center is leased to a variety of investment-grade tenants including the U.S. General Services Administration, North American Company for Life and Health Insurance, and AkzoNobel. Construction of the building was completed in 2001.

This transaction marks another recapitalization of a former tenant-in-common-owned property that was originally syndicated by Triple Net Properties, and subsequently managed by Daymark Realty Advisors.

“We are very excited to have closed on this real estate acquisition through ARPT in a joint venture with Northwood Investors,” says Todd Mikles, CEO of Sovereign Capital Management Group.

“Congress Center is a quality asset that is now under ownership with the financial strength necessary to invest in the building and lease the remaining vacant space. Our goal is to continue recapitalizing properties in the Triple Net Properties portfolio — specifically, challenged properties acquired at the height of the real estate market,” adds Mikles.

The tenant-in-common, or TIC, structure allows small investors to acquire a fractional interest in institutional-grade property. At the height of the last real estate boom in the mid-2000s it was a popular vehicle.

According to Crain’s Chicago Business, the Congress Center was one of many TIC deals syndicated by Triple Net Properties. Triple Net later became known as Daymark Realty Advisors, which was sold to a venture of Sovereign and New York-based Infinity Group. The TIC owners paid $136.1 million for the tower in 2003, according to Crain’s.

Headquartered in San Diego, Sovereign Capital Management Group and its closely held affiliates have grown to include nationwide asset management, property management, advisory services, private equity syndications and various property holdings across the U.S.

Northwood Investors is a privately held global real estate investment firm based in New York with more than $2 billion of real estate assets. Founded in 2006 by John Kukral, Northwood employs a value-driven investment strategy with a longer-term outlook.

Northwood has extensive experience investing in a wide range of real estate assets worldwide, including office buildings, shopping centers, hotels and residential investments.

Matt Valley

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