"The Younan team is consistently professional and flexible in order to make lease transactions happen, which is a refreshing change from many other landlords with properties in the same office markets"

Brian Hennessey - Colliers International

News and Events - 2006

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Younan Properties Continues Aggressive Expansion into Northwest Chicago

pdfClass A Acquisition Brings Younan Properties' Holdings in Chicago's Northwest Office Market to 420,000 Square Feet

ARLINGTON HEIGHTS, IL (January 9, 2006) On the heels of its acquisition in December 2005 of Embassy Plaza in Schaumburg, Ill., Woodland Hills, Calif.-based Younan Properties, Inc. (YPI), one of the fastest-growing, privately held real estate investment groups in the country, has added One North Arlington in Arlington Heights, Ill. to its portfolio of Class A office properties in Chicago's northwest suburbs.
Younan Properties purchased the seven-story, 158,879-square-foot office building at 1500 West Shure Dr. in Arlington Heights from Kennedy Associates, headquartered in Seattle. Younan Properties represented itself in the transaction. James J. Postweiler, managing director-capital markets for Jones Lang LaSalle of Chicago, represented the seller.

We have made steady progress leasing our existing buildings in Chicago's northwest office market and we will continue to buy new buildings as long as this positive trend continues, said Zaya S. Younan, chairman & CEO of Younan Properties, Inc. The Chicago office market is recovering from the 2001 recession due to the recent positive absorption in the market, which supports this outlook. We also see the beginning of significant flow of funds in the Chicago market and strength in manufacturing and office employment.

Built in 1986, One North Arlington is a seven-story office building located at the intersection of Route 53 and Dundee Road in Chicago's northwest suburban office submarket. It is currently 96% occupied by major tenants that include State Farm Automobile Insurance Company and AMCOL International, both of which have leased space in the building since it was built. The property offers easy access to Interstates 90 and 290, and is located only 19 miles from O'Hare International Airport and 26 miles from downtown Chicago.

Younan Properties' professionalism and exceptional attention to detail was a major factor in the successful completion of this transaction, observed Postweiler. Zaya Younan and his team are aggressive deal makers who work to overcome issues as they arise. It was refreshing to have both a client like Kennedy Associates and a buyer like Younan Properties maintain the focus on achieving a sale that was good for both parties.

One North Arlington is Younan Properties' third major acquisition in suburban Chicago. The closing brings the firm's holdings in Northwest Chicago to 420,000 square feet of Class A office space nearly halfway to its goal of acquiring at least one million square feet in 2006. Along with Embassy Plaza, a 140,196-square-foot seven-story Class A office building, Younan Properties' owns Prairie Stone Commons, a 110,000-square-foot Class A office complex in Chicago.

Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties' management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $600 million in real estate holdings since its inception in 2002. The company's national portfolio currently includes 20 Class A office properties totaling more than 4.6 million square feet.

Younan Properties Achieves Exceptional Growth with Acquisition of 2.6 Million Sq. Ft

pdfFast-growing investment firm records strongest year to date with purchase of 10 Class A office properties in high-growth markets across the U.S.

WOODLAND HILLS, CA (January 16, 2006) In a year of exceptional expansion, Woodland Hills, Calif.-based Younan Properties, Inc. (YPI), one of the fastest-growing, privately held real estate investment groups in the country, acquired 10 Class A office properties in 2005 totaling 2.6 million square feet. Its successful campaign to grow and improve the quality of its assets also included the disposition of six Class B office buildings sales that delivered an average return of 45% to its investors.

The portfolio upgrade yielded a boost in the average size and occupancy of YPI properties. The median size of Younan Properties' office buildings rose from 120,000 square feet to 350,000 square feet, while average occupancy climbed from 67% to more than 85% in 2005. With a dual focus on operational efficiencies and tenant satisfaction, Younan Properties increased the average gross revenue and average net operating income per-building, per-square-foot by more than 32%.

We're extremely proud of what we accomplished in 2005, and we are now in a very strong position for accelerated growth in 2006, said Zaya S. Younan, chairman and CEO of Younan Properties, Inc. Our evolution into one of the fastest-growing commercial real estate companies in the country and one of the best office landlords will be solidified next year, as we achieve our goal of acquiring another five million square feet of Class A office space in some of the country's most promising submarkets.
Noteworthy 2005 acquisitions for YPI include:

ARIZONA

  • Four Gateway, a four-story, 138,000-square-foot office building located at 444 North 44th Street near the Phoenix/Sky Harbor Airport in Phoenix, Arizona. Major tenants include Value Option and Eclypsis.

FLORIDA

  • Southpoint Executive Center, a four-story, 136,000-square-foot, institutional quality, Class A office building located at 151 Southhall Lane in Maitland, Florida. Noteworthy tenants include Ford Motor Credit, Sprint and Voit Brokerage Co.

ILLINOIS

  • Embassy Plaza, a seven-story, 140,196-square-foot office building located at 1933 North Meacham Road in Schaumburg, Illinois. Major tenants include ConAgra, Bakemark Ingredients, Tellabs Operations and Bechtel Corporation.
  • One North Arlington, a seven-story, 158,879-square-foot office building located at 1500 West Shure
    Drive in Arlington Heights, Illinois. Major tenants include State Farm Automobile Insurance Company and AMCOL International.
  • Prairie Stone Commons, a three-story, two-building office property totaling 110,000 square feet located at 5401 & 5407 Trillium Blvd. in Chicago, Illinois. Major tenants include Sears, Levis Strauss & Co, Maytag, Whirlpool, SERTA, Frigidaire and John Deere.

TEXAS

  • North Central Plaza, a 16-story, 346,575-square-foot tower located at Dallas' second busiest intersection, at the southwest corner of the LBJ Freeway and North Central Expressway. Major tenants include Snelling & Snelling, Marc USA, Trinity Consultant, Bridgefarmer & Associates, Inc. and Interlink-Partners.
  • Eighty-Eighty Central, a 17-story, 283,707-square-foot high-rise located in the heart of Dallas' North Central Expressway submarket, just one block from a Dallas light rail system stop. Major tenants include Compass Bank, Health Texas Provider and Maynord Oil Company.
  • 9400 Plaza, a 16-story, 379,556-square-foot office building strategically located in the North Dallas area on North Central Expressway between Walnut Hill Lane and Park Lane. Major tenants include Milliman & Robertson, Benefit Partners, Promotion Network and Kennedy Wilson Properties.
  • Four Forest Plaza, a 19-story, 395,000-square-foot contemporary office building located at 12222 Merit Drive, near Highway 75 and Interstate 635 in North Dallas. Major tenants include Zurich US, ACIG Insurance, Lee Financial Corporation, International Risk Management and Huselton & Morgan.
  • Lakeside Square, a modern 18-story, 398,000-square-foot lakefront office building located at 12377 Merit Drive in north suburban Dallas at the intersection of the LBJ Freeway and North Central Expressway. Major tenants include National City Mortgage, Towers Perrin Forster, CH2M Hill, Federal Liaison Services, and Exco Resources.

Younan Properties' bid for continued growth calls for a continued focus on acquisitions in Florida, Illinois and Texas, as well as other areas of the Southwest. The firm plans to expand its dominant presence in Dallas, where it is now the second-largest office property owner, as well as Chicago's northwest suburbs.

Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties' management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $600 million in real estate holdings since its inception in 2002. The company's national portfolio currently includes 20 Class A office properties totaling more than 4.6 million square feet.

Younan Properties Announces Acquisition of Norfolk Tower in Houston, Texas

pdf206,680-square-foot high-rise strengthens Younan Properties' dominance in the Southwest office market and advances campaign to acquire five million square feet of Class A office space in 2006

HOUSTON, TX (February 13, 2006) Continuing its pattern of aggressive expansion in the country's most promising submarkets, Woodland Hills, Calif.-based Younan Properties, Inc. (YPI), has announced the acquisition of Norfolk Tower, a 206,680-square-foot Class A high-rise located at 2211 Norfolk Street in Houston, Texas.

Younan Properties purchased the 11-story office property from ING Clarion, based in Boston, Mass. Younan Properties represented itself in the transaction. John S. Dailey, executive vice president/managing director private client services for PM Realty Group in Houston, represented the seller.

After several years of decline, the Houston office market is showing clear signs of recovery and we are very confident about a continuing upward trend, said Zaya S. Younan, Chairman & CEO of Younan Properties, Inc. Leasing activity is strong, rents have started going up, vacancy rates have declined, and we believe this is the prime time to capitalize on the upswing.

Built in 1982, Norfolk Tower is set on 2.36 acres along Highway 59 at Greenbriar Street, minutes from Rice University as well as the renowned Texas Medical Center. The rich brick masonry office building is currently 75% occupied by major tenants that include Frost Bank, Houston Medical Records, Inc., Groundwater Services, Global Search Consulting, L.P. and TranSystems Corporation. Surrounding the property are some of Houston's most affluent neighborhoods, including River Oaks, West University Place, Southampton and Montrose.

Zaya Younan and his team are smart, aggressive investors, and we were impressed with their professionalism and meticulous attention to detail in this transaction, observed John S. Dailey, PM Realty Group executive vice president/managing director private client services.

Norfolk Tower is Younan Properties' fourth acquisition in Houston. The firm currently owns Wilcrest Executive Building, a three-story multi-tenant building with 68,000 square feet in the Energy Corridor of West Houston. In Dallas, Younan Properties is the second largest office landlord, with a portfolio of seven prime properties totaling 2.7 million square feet of Class A office space.

In 2006, Younan Properties aims to acquire another five million square feet of Class A office space in high-growth markets, with a focus on acquisitions in Texas, Florida, Illinois and other areas of the Southwest.

Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties' management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $800 million in real estate holdings since its inception in 2002. The company's national portfolio currently includes 21 Class A office properties totaling more than 4.8 million square feet.

Younan Properties Names Michael O'Donovan Controller

pdfWOODLAND HILLS, CA (February 20, 2006) Younan Properties, Inc. (YPI), one of the fastest-growing, privately held real estate investment groups in the country, announced today it has hired Michael O'Donovan as Controller. In this critical role, Mr. O'Donovan will be responsible for furthering development of the accounting and finance activities and processes that will support Younan Properties' rapid expansion and planned growth in key, high-growth office markets throughout the United States.

Mr. O'Donovan brings more than 25 years of experience as a senior financial executive for both privately held and publicly-traded companies to his new position at Younan Properties. Over the course of his career, Mr. O'Donovan has been involved in the acquisition and integration of more than 80 companies.

Prior to joining Younan Properties, Mr. O'Donovan served as Chief Financial Officer for STK International, Inc., with offices in the United States and China. Over the past decade, he also served as Chief Financial Officer for Los Angeles, Calif.-based Rembrandt Photo Services and Thompson PBE, Inc. (NASD: THOM) headquartered in Marina del Rey, Calif. Earlier in his career, he served as Director of Accounting for Retix (NASD: RETX) and as a manager with Price Waterhouse.

Michael's extensive experience as Corporate Controller and Chief Financial Officer for both privately held and publicly-traded companies will be a tremendous asset to improve our financial organization and improve our reporting system to support the phenomenal growth we anticipate in the foreseeable future, said Zaya Younan, Chairman and CEO of Younan Properties, Inc. With his multi-national background and broad expertise in accounting and cost controls, he will be a key support member of our management team.

Most recently, Younan Properties added Norfolk Tower, an 11-story, 206,680-square-foot Class A high-rise in Houston, Texas and One North Arlington, a seven-story, 158,879-square-foot Class A office building in Arlington Heights, Illinois to its $800 million portfolio. The recent acquisitions bring Younan Properties' 35-building national portfolio to more than 6.5 million square feet of prime office space.

Mr. O'Donovan earned a Bachelor of Science degree in Accounting from the University of La Verne, and is also licensed as a Certified Public Accountant.

Younan Properties' rapid growth and high investor returns reflect the benefits of bringing the best practices and operating disciplines from other industries to commercial real estate, Mr. O'Donovan commented. I'm confident that my experience in the distribution, manufacturing and service industries will contribute to Younan Properties further development of the innovative practices that have contributed to its reputation as a forward-thinking, highly progressive leader in the commercial real estate industry.

Younan Properties Allies with Local Union in a Win-Win Partnership in Northwest Chicago

pdfSEIU Local I janitors are back on the job and providing top-notch services at Younan Properties' Embassy Plaza, One North Arlington and Prairie Stone Commons in Northwest Chicago

WOODLAND HILLS, CA (March 6, 2006) Younan Properties has announced the successful resolution of a labor dispute with Service Employees International Union (SEIU) Local 1 with an agreement that put a handful of union janitors back to work at the Woodland Hills, Calif.-based firm's three Class A office buildings in Northwest Chicago. With ABM Lakeside union crews now in place at Embassy Plaza, One North Arlington and Prairie Stone Commons, Younan Properties is effectively fulfilling its responsibility to both investors and tenants in providing the most efficient and cost effective management of its Class A office properties.

We strongly believe that unions, their affiliates and Local 1 in Chicago have had a positive impact on the productivity of the U.S. workforce, said Zaya S. Younan, Chairman & CEO of Younan Properties, Inc. Reaching back to America's Great Depression, we have had many family members involved in this great labor movement, which has benefited our nation. However, we at Younan Properties, Inc. will continue to search for the most efficient and cost effective way to manage our buildings for our investors and tenants. This is our fiduciary responsibility, and one that we take seriously.

Younan has much to be serious about since Chicago is an area his firm has targeted for aggressive expansion over the next year. With a $1 billion acquisition goal in Northwest Chicago, Younan Properties is poised to become one of the submarket's largest landlords, as it prepares to more than double its current 420,000 square feet of Class A office space in 2006. Managing its assets with a keen eye for operational efficiencies and the most cost effective service providers available will be critical in maintaining top standards for tenants while turning optimal profits for investors.

I am pleased we were able to reach common ground with Service Employees International Union and its Local 1 in Chicago to develop a win-win partnership going forward, stated Zaya S. Younan. I am glad that we have established a working relationship with Service Employees International Union Local 1 early on in our growth path, as we will continue to grow our portfolio nationally.

Brad Hanewall, YPI's property manager at Embassy Plaza and One North Arlington also expressed satisfaction with the resolution. Continual evaluation of all service agencies is essential in staying competitive in the marketplace and in fulfilling our obligations to all who have placed faith in Younan Properties' superior office management capabilities, he said. ABM Lakeside is now providing exceptional services with superior attention to detail, for competitive wages that should provide an incentive for top productivity.

According to Daniel Schlademan, Vice President of the Service Employees International Union Local 1, which represents 42,000 workers in Illinois, Missouri and Wisconsin, the agreement will produce long-term savings for Younan Properties by providing good living wages and benefits that contribute to lower rates of turnover and higher productivity.

We regret any inconvenience caused by the misunderstanding between SEIU Local 1 and Younan Properties and we are pleased to acknowledge that we have come to an agreement, he said. We are extremely pleased to be allied with this pro-active firm in a contract that celebrates the value of our organization and provides good living wages and benefits for our members. Our new win-win alliance will enable Younan Properties to maintain its competitive advantage in office property management while demonstrating its faith and support of union labor. We now look at the strong working relationship we've established with Younan Properties as the beginning of a very positive professional partnership."

Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties' management team has more than four decades of experience in developing and managing commercial real estate in high growth markets throughout the United States. Headed by Zaya S. Younan, Younan Properties has accumulated more than $800 million in real estate holdings since its inception in 2002. The company's national portfolio currently includes 21 Class A office properties totaling more than 4.8 million square feet.

younan-tower-250-200Younan Properties, Inc., is a privately-held real estate investment and management company, specializing in acquiring Class A office properties in high-growth markets throughout the United States including Dallas, Houston, Chicago, Los Angeles and Phoenix.

Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan currently owns and manages nearly six million square feet of Class A mid- to high-rise institutional quality assets.

In the News

zaya-bisnow Younan Properties chairman Zaya Younan sees a tipping point where recovery started a couple of quarters ago. The company owns several assets in the San Fernando and Conejo valleys, and signs of improvement have been consistent throughout those markets, he says. There's positive absorption, vacancies are going down, and rates are going up. (Stephen Colbert even highlighted the district on Tuesday night.)

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