Home News Kemper Lakes Business Center sells for $190M, highest price for suburban office site in 17 years

Kemper Lakes Business Center sells for $190M, highest price for suburban office site in 17 years

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The Kemper Lakes Business Center in southern Lake County was acquired for $ 190 million. This is the highest price paid for a suburban office property in 17 years.

North East Capital Group In Spring Valley, NY Apollo Global ManagementAccording to sources familiar with transactions.

Apollo declined to comment and was unable to reach Northeast Capital.

The center is surrounded by the Kemper Lakes Golf Club, north of Route 22 and east of Quentin Road in the unincorporated Lake County. The 164 acre site shares the zip code of 60047 with Lake Zurich, Kirdia, Deer Park and Longgrove.

According to Kevin Concidin, president and CEO, the sale of Kemper, which joined Deerfield’s Corporate 500 office complex six months ago, is a plus for good tenants to own the building for long-term rentals. Lake County Partners, the county’s economic development sector, reflects the demands of investors looking at returns

Fresenius Kabi, ACCO Brands, Dovenmuehle, Kemper Lakes Business Center.. Fresenius Kabi, a global health care company, is based in Germany, but has its US headquarters in Kemper.

Eddie Marie Koehler, who has been a senior general manager at the Kemper Lakes Business Center for eight years and now works at Northeast Capital, said:


        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        

“The acquisition for them is a longer-term hold,” she said.

Crain’s Chicago Business reported that the purchase price of suburban office properties has been the highest since 2005, when the 150-acre former AT & T campus in Hoffman Estates was sold for more than $ 338 million.

According to Crain’s, Apollo paid $ 127 million to the campus in 2014.

The sale of Kemper Lakes stands out as a big bet in the office market. According to Crain’s, remote work has increased and pandemics have led more companies to consider their workspace needs.

“Such investments are related not only to the building, but also to the ability to attract communities and talent,” Considin said.

He said there are 10 Fortune 500 companies in Lake County, with headquarters second only to downtown Chicago in the Midwest.

Koehler said the Kemper Lakes Business Center consists of four connected buildings built between 1971 and 1991. Originally developed by the Kemper Insurance Group, it was completely occupied.

The population before COVID was 4,500. It has now reached 1,300 and is improving, according to Koehler, but may not reach full capacity again.

Concidin said all companies across the country are trying to determine the best way to integrate the flexibility of working from home.

“In reality, it will take years to evaluate,” he said.

Koehler described the Kemper Lakes Business Center as a “corporate oasis” in a quiet environment with facilities such as day care, a fitness center and an auditorium.

She said Kemper was selected by the Chicago Suburbs Building Owners and Managers Association as the 2022 Regional Outstanding Building in the Over 1 Million Square Foot category and will enter international competition.

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