According to the leaflet, the asking price of the property that Walgreens rented until August 2023 but is not currently occupied is not listed. The drugstore giant sold it to San Diego-based Realty Income, which spun off Orion last year, for $ 85 million. 2013 sale leaseback contract.
Currently, the property has earned more than a year of income from Walgreens leases and is expected to acquire a portion of it. But it’s not clear what it will be next. Investors familiar with the proposed bid could be $ 20 to $ 30 million if someone buys the entire property, depending on its intended use and what the Deerfield village allows. I have.
CBRE proposes applications such as apartments, clinics, housing for the elderly, last mile industrial warehouses, and adaptive use of existing buildings, and considers them as candidates for multipurpose development sites.
This property has been added to the list of old suburban office properties that are ready to change into something completely different as the demand for workspaces has diminished due to the rise of remote work.Companies that are reducing office space Suburban office vacancy rate is record high During the COVID-19 pandemic, some office real estate owners were urged to sell to investors looking for redevelopment opportunities.
In one of the hottest local examples, Allstate sells Northbrook’s long-standing corporate campus to industrial developers in Nevada. Plan to destroy it Build a highly coveted warehouse on the premises. According to Cook County real estate records, Walgreens itself recently dropped a 284,000-square-foot office building on 4000 Commercial Avenue in Northbrook to a Boston-based TA Realty venture for just under $ 21 million. I participated in an office sale party. TA plans to redevelop the site with a $ 40 million warehouse project.
Orion isn’t even the largest potential redevelopment property in Deerfield, but it aims to follow suit on its site.Medical product company Baxter International recently set up a 101-acre headquarters campus in the suburbs For sale While it’s looking for a new, perhaps smaller headquarters in the area.
Walgreens initially purchased a Lake Cook Road property in 2004 and expanded it from its headquarters on nearby Wilmot Road. In 2013, the company announced that it would upgrade its Lake Cook building as it relocated its Information Technology Group to a building outside Lincolnshire.
However, Walgreens in 2017 showed a greater commitment to downtown than to the suburbs. Doubled the size of the office on State Street. The company said it would add 300 new jobs to the loop at the time and begin trying to sublease unnecessary space in Deerfield, including the Lake Cook Road building. This move is part of a broader focus and foresight on the “workplace of tomorrow,” where offices have more space for group meetings and employees can work from home up to two days a week. It was something that had.
Then in 2018 Walgreens Sign on As the first major tenant of the redeveloped former post office, he said he would maintain about 3,200 jobs in Deerfield while moving another 1,300 jobs to downtown.
According to the CBRE leaflet, the Orion building was built in stages from 1976 to 1984. According to a brokerage firm, one of Deerfield’s few real estate properties in Cook County, real estate is today zoned for office, research, and restricted industrial use.
Other vacant suburban office properties have found a new life as a modern office.New Jersey developers on Hoffman Estates’ abandoned AT & T campus Bellworks Chicago Land While Chicago developers have been renewed and almost leased up, they have recently succeeded in attracting office tenants. Former OfficeMax headquarters The building of Naperville, now known as Schumann.
These days, ace hardware Conclude a rental contract Relocate headquarters to the former McDonald’s corporate campus in Oak Brook. This was a huge win for California investors who bought real estate three years ago.
An Orion spokesman did not respond to a request for comment.
CBRE brokers Tony Gandhi, Matt Ishikawa, Brian Buckingham and Toms Voboda sell Lake Cook Road real estate on behalf of Walgreens.