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BVK buys Chicago property for $130 million

The German pension scheme’s last US transaction was the February 2014 purchase of an Illinois warehouse.

LaSalle Investment Management has acquired a Chicago mixed-use property on behalf of German pension Bayerische Ärzteversorgung (BAV), the Chicago-based firm said Thursday.

Local media reported a $130 million price tag for Blackhawk on Halsted, a 225,000 square foot property that includes medical offices, retail tenants, a parking garage and a private school building. The building, constructed in 2009, is 98 percent leased, according to LaSalle’s statement. The terms of the deal were not disclosed.

BAV is one of the 12 pension institutions that comprise German pension fund BVK, a Bavarian umbrella pension scheme for self-employed professionals such as doctors, lawyers and architects. In August 2013, BVK handed a €500 million global property mandate to LaSalle. The mandate is like a separate account, with LaSalle responsible for constructing a global portfolio of real estate assets rather than fund interests.

“Blackhawk is a prototypical urban, mixed-use asset that offers the type of characteristics we’re targeting for many of our clients,” said David Schreiber, LaSalle’s managing director of acquisitions, in the firm’s statement. “The property has attracted a strong complementary mix of health care, education and retail users that are a perfect fit for the demographics driving growth in this corridor, and has the added appeal of accommodating industries that tend to demonstrate high retention and low volatility through all market cycles.”

BVK’s only other publicly-disclosed US transaction was the February 2014 purchase of a Romeoville, Illinois warehouse for $51 million with LaSalle, according to data provider Real Capital Analytics.

LaSalle has about $58 billion in assets under management, according to Thursday’s statement. BVK’s real estate holdings comprise 18 percent of its overall €62 billion portfolio, according to its website. Just 1 percent of its portfolio is invested in real estate abroad.