Former Zurich headquarters in Schaumburg sold for $86.7 million
A Skokie-based real estate investor has purchased the former Zurich North American headquarters in Schaumburg for $86.7 million.
"Schaumburg Towers is the rarest of suburban office opportunities," said John Roeser, executive vice president of American Landmark Properties. "It's an iconic, Class A trophy office within an urban environment, with breathtaking amenities at a premier location." American Landmark Properties acquired the property from Retail Properties of America.
American Landmark Properties, which was also responsible for the sale of Willis Tower in 2015 in Chicago, hired Colliers as the leasing agent for the property, now known as Schaumburg Towers, said James Schmiedeskamp, investor relations director.
"The property is about 48 percent leased. They are aggressively looking to fill the rest of the property" at 1400 and 1450 American Lane consisting of two 21-story office buildings connected at their base by a three-story atrium building and two five-story parking garages.
The complex was part of the former headquarters of Zurich North America until 2016, when it moved to a new $333 million headquarters nearby. Since then, more than 400,000 square feet of new leases have been signed, including transactions with major tenants Paylocity, Great American Insurance, Charles Industries and Swiss Re.
The property is nearing completion of an 18-month-long, $10 million capital improvement program. In an effort to attract high-end tenants and workers, improvements include a state-of-the-art fitness center, new upscale cafeteria with casual dining, Wi-Fi lounge, conference center, outdoor plaza and amphitheater for meetings.
Because of the improvements, over the last 12 months, Schaumburg Towers has outperformed the market in leasing activity, Schmiedeskamp said.
Meanwhile, Cohen Financial, a division of SunTrust Bank and a national real estate capital services firm, secured a total of $110 million for the acquisition of the property. Cohen Financial partnered with Steve Roth of CBRE to secure the financing, which closed on June 1.
The financing from Cohen Financial includes support for additional capital improvements and lease-up activity, Schmiedeskamp said.
"Schaumburg Towers is fully equipped to meet the demands of the modern tenant," said Dan Rosenberg, managing director of Cohen Financial. "With its best-in-class amenities, proximity to the popular Woodfield Mall, restaurants and major transportation nodes, this asset is uniquely positioned in a live, work, play environment, which is a rare commodity in the Chicago suburbs," he added.
American Landmark Properties is the owner of numerous suburban office properties, as well as Class A office high-rises in Cleveland, New Jersey and New York. It is widely known for its acquisition of the Willis Tower in 2004 and its sale to the Blackstone Group in 2015.