The property comprises 195,000 sqft of Illinois office space, currently rented by the leading pharmacy healthcare business in the United States and one of the largest employers in the country.
Caremark counts the offices at Northbrook as one of its most important regional operating centres, given its location just 25 miles north-west of Chicago’s central business district and within 10 miles of O’Hare International Airport, the busiest in the state.
Cole Real Estate Investments has acquired the property, known for obvious reasons as Caremark Tower II, for a price of $44.25 million to add to the 1,500 commercial sites it already owns across the US.
“This acquisition fits squarely with Cole’s investment strategy focused on high-quality commercial properties, long-term leased to creditworthy, industry-leading businesses,” said Robert Micera, Cole’s office space investment chief. “This is a mission-critical office asset for CVS Caremark, well-located in a northern Chicago suburb with strong demographics, and we are pleased to include this in our expanding portfolio,” he added.
Based in Rhode Island, the smallest state in the US, CVS Caremark employs roughly 200,000 people within its pharmacy healthcare operation. Its annual revenues are worth close to a hundred billion dollars and it was ranked 21st on the Fortune 500 list of America’s biggest companies in 2011.
Chicago is regularly listed among the world’s most important cities for doing business, and its metropolitan output is the third largest annually in the US, behind New York City and Los Angeles.
Editor’s notes: The corporate name for CVS Caremark became CVS Health, with CVS Caremark becoming a subsidiary in 2014.
CVS Health’s total revenue in 2023 increased by 10.9% from the previous year to $357.8 billion. Almost half of that revenue came from its Health Services division, CVS Healthspire, which the company organized in December 2023.
It was reported in January 2023 that Caremark Tower II, which reverted to its previous name of 2211 Sanders Road when CVS vacated the property in 2022, had lost nearly all of its capital value.
Arizona-based real estate investment trust Orion Office sold the empty 197,300-square-foot office building to an unnamed buyer for approximately $2.5 million, 95 per cent of its 2011 value of $44.25 million.
American Realty Capital Properties Inc. purchased Cole Real Estate Investments Inc. for approximately $7.2 billion in cash and stock in 2013 to create the largest U.S. net-leased real estate investment trust (REIT).
In the same year, Realty Income Corporation acquired American Realty. Realty Income Corporation is a REIT that invests in free-standing, single-tenant commercial properties.
In November 2021, Realty Income Corporation announced it had completed the spin-off of substantially all its office assets into a new independent, publicly traded REIT called Orion Office REIT Inc.