CT Acquisitions, a partnership between Philadelphia-based Rubenstein Partners and Chicago-based GlenStar, has acquired Continental Towers in Rolling Meadows for $121.5M. With an infusion of $20M earmarked for additional renovations, the Rubenstein-GlenStar JV said it plans to build upon prior renovations.

The partnership envisions a complete overhaul of the 2-acre plaza deck as well as the property’s lobbies, café and amenity spaces. Restroom and corridor work will also continue.

“Our main focus is to seek out value-add office assets in emerging markets, and Continental Towers represents everything we look for in an investment,” Rubenstein Partners’ Brandon Huffman said in a statement. “We believe strongly that the combination of the property’s location in northwest suburban Chicago and our planned capital improvements will make this an attractive choice to office users.”

Continental Towers, developed in the early 1980s, is a three-tower office complex. GlenStar initially acquired the property in 2013 and has since spent about $30M on capital upgrades to redevelop the 910K SF office property.

GlenStar’s capital spending, launched in 2013, included building a 734-stall parking garage and reconfiguring the overall site plan. Other renovations included a complete rebuild of the fitness center as well as signage, restroom and corridor upgrades. As a result, the buyers said, occupancy increased from 55% in 2013 to 90% now.

Source: rebusinessonline.com

The suburban properties which do the best are typically larger assets that are well-capitalized and have top-flight amenities.

CHICAGO—Another renovated suburban office complex has changed hands, one of several to do so recently as properties that once struggled now fill up with tenants and attract investor interest. CT Acquisitions, LLC, a partnership between Philadelphia-based Rubenstein Partners and Chicago-based GlenStar, has acquired Continental Towers, a 911,341-square-foot campus located in Rolling Meadows, IL, for $121.5 million.

Source: globest.com

CT Acquisitions, LLC, a partnership between Philadelphia-based Rubenstein Partners and Chicago-based GlenStar, has acquired Continental Towers located in Rolling Meadows, Illinois, for $121.5 million.

GlenStar initially acquired the property in 2013 and since then has expended approximately $30 million on capital upgrades to completely redevelop the 910,796-square-foot office complex and restore it to its former “top of market” status. With an infusion of $20 million earmarked for additional renovations, the new joint venture between Rubenstein and GlenStar plans to build upon on the prior renovations to further solidify Continental Towers as a Class A office complex.

“Our main focus as a firm is to seek out and acquire high-quality, value-add office assets in emerging markets and the Continental Towers property represents everything we typically look for in an investment,” said Brandon Huffman for Rubenstein Partners. “We believe strongly that the combination of the property’s exceptional location in suburban Northwest Chicago and our planned significant capital improvements will make this an attractive choice to office users throughout the market.”

The partnership envisions a complete overhaul of the massive, two-acre plaza deck as well as lobbies, café and amenity space. Restroom and corridor work will continue. Work is set to begin immediately.

“Having such a large outdoor space—a two-acre blank canvas—will allow us to do something very unique and special at Continental Towers,” said GlenStar principal Michael Klein. “We’re excited to watch the project progress into its next phase.”

The three-tower office complex was a premier office destination in suburban Chicago when constructed in 1981. Centered around an amenity-rich concourse whose tenants include a 22,000-square-foot health club, dining and retail amenities, the buildings sit on a 34-acre corporate campus that provides unobstructed views in all directions, easy access to the Woodfield Mall and high visibility along I-90.

GlenStar’s capital campaign, launched in 2013, included building a 734-stall parking garage and reconfiguring the overall site plan to create a more inviting, and easier to navigate, entryway. Other significant renovations included a complete rebuild of the fitness center as well as signage, restroom and corridor upgrades. As a result, occupancy jumped from 55 to 90 percent while landing high-profile tenants such as Verizon and Panasonic.

“Our partnership with Rubenstein not only ensures completion of the project, but also guarantees that Continental Towers maintains its Class A presence in the market, and is noted for being a property that caters to a top-tier tenancy,” said Klein.

Source: rejournals.com

Schaumburg epitomized the post-World War II development boom. The northwest suburb’s March 1956 incorporation allowed trustees to control the village’s growth and development, and it reserved large tracts of land for commercial, office and industrial development that lasted well into the 1970s and transformed Schaumburg from a rural environment to an urban one. The past 20 years have seen Schaumburg hampered by the limits to development the village trustees imposed. That is changing at a fast pace, fueled by these four factors.

Shopping malls have been among the hardest hit in retail’s bifurcation and only those assets repositioning themselves as super-regional destinations are riding out the storm. Woodfield Mall, Illinois’ largest, has undergone a face-lift since Simon Property Group bought a 50% stake (valued at $505M) in the center five years ago. The centerpiece of the renovations is a $14M overhaul of Woodfield Mall’s food court, featuring a mix of local and national fast-casual dining options. Woodfield Mall General Manager Kurt Webb said Simon has turned over 30% of Woodfield’s tenant mix since acquiring the property, and its location enables it to capture better tenants. Woodfield Mall is also the epicenter of the real estate activity happening in Schaumburg. Nearly every new development, redevelopment and renovation project touts being near Woodfield Mall as an advantage. Woodfield Mall generates $21.6M in tax revenue for Cook County, the second-largest tax bill in the county behind Willis Tower.

Zurich North America’s new headquarters, situated on 40 acres of the Motorola Solutions campus, showed a commitment from the insurance giant to Schaumburg and strong demand for single-tenant, build-to-suit office development. UrbanStreet Group’s Bob Burk said office will be a component to its redevelopment of the campus. Office investors are also looking for value-add opportunities and Schaumburg has seen brisk activity the past couple of years. American Landmark Properties’ $87M acquisition of Schaumburg Towers is the most recent example. Zeller Realty’s $74M purchase of Woodfield Preserve Office Center in 2016 was its first post-recession suburban acquisition. GlenStar Properties bought Schaumburg Corporate Center for $80M in April 2017, and is in the process of a $28M renovation.

Arbor Lodging Partners CEO Vamsi Bonthala said investor demand for suburban hotels is not as deep as in Chicago proper but is still strong, especially for investors seeking value-add opportunities. Bonthala said Arbor Lodging’s $35.5M acquisition of the Marriott Schaumburg hotel in February was an opportunity to buy a strong branded hotel in a great location. Schaumburg hotels can boast their proximity to O’Hare International Airport as a selling point, while the village is near several Fortune 500 companies like Walgreens, Caterpillar, Sears Holdings, Kraft Foods, Allstate and Illinois Tool Works. Bonthala said Arbor has a good opportunity to transform the Marriott Schaumburg into a modern hotel to capitalize on business travelers visiting suburban companies. Arbor plans to add a food and beverage component to the hotel, while upgrading 25K SF of meeting space. Another hotel seeking to capitalize on business travel is the Hyatt Regency Schaumburg, across from Woodfield Mall. The owners, a venture of First Equity Group and T2 Capital Management, recently completed a $15M interior renovation anchored by a new City Works Eatery & Pour House. 

Source: bisnow.com

Construction has kicked off on one of North Dallas’ biggest business campus makeovers.

GlenStar Properties and USAA Real Estate have spent more than a year working on plans for the reboot of the 14-acre Energy Square complex at North Central Expressway and University Boulevard.

The four-building office and retail complex is getting a $50 million-plus redo that won’t be finished until the second half of 2019. The project includes restoration of the landmark Meadows Building, one of Dallas’ first “suburban” office towers.

“The construction barricades went up two weeks ago and we are well underway on the work,” said GlenStar principal Matthew Omundson, giving a tour as workers were busy disassembling a huge wooden pergola to make way for construction.

Allen mixed-use project breaks ground this week with a dozen-plus buildings lined up
The redevelopment will include demolition of an old fountain and upper-level plaza area to make way for a new boulevard linking the office towers. A 10,000-square-foot, glass-covered exercise facility will be added overlooking the new drive.

“For a 1 million-square-foot campus, it’s an advantage we can provide our tenants,” Omundson said. “We are doing a top to bottom renovation of the entire property.

“We didn’t want anything to feel old when we are done. When we are done, you won’t have to touch this property for 10 to 15 years.”

GlenStar is reworking all the parking at Energy Square and has purchased a small commercial building next door to make room for more spaces.

“A lot of the work is on the interiors,” Omundson said. “We are putting a bunch of money in every building.”

Energy Square’s oldest component, the Meadows Building, was built in 1955. The other three office towers were constructed in 1974, 1981 and 1986.

GlenStar and USAA paid an estimated $150 million in 2015 for the three Energy Square towers, which were bought from a local partnership. Several months later, the investors acquired the historic Meadows Building from a West Coast owner.

“Significant capital improvements to Energy Square will further create an inviting, top-tier office and lifestyle experience for our existing and future customers,” said JLL’s Jeff Eckert, who is on the project leasing team. “Our goal is to bring a new energy of excellence and establishment to one of Dallas’ most well-known office campuses.”

Whiting-Turner is the general contractor on the redevelopment. Architects include Gensler, Architexas and Studio Outside.

Gensler just announced plans to move its Dallas regional office from LBJ Freeway to the two-story Greenville Avenue wing of the Meadows Building. The architect is taking more than 40,000 square feet at Energy Square.

Omundson said construction has already begun on the Gensler space and includes construction of two large light wells through the building. He said the firm looked at more than two dozen locations before choosing Energy Square.

“This has always been an architecturally driven project,” he said. “With Gensler, it adds even more emphasis.”

Source: dallasnews.com

BlueGrace Logistics, a nationwide third-party logistics provider, said it plans to add to its Illinois footprint and open a new office in Chicago.

The company will continue to operate its offices in Itasca at 900 N. Arlington Heights Road where it employs about 60 people. The Chicago location in the Chicago Board of Trade Building will add another 80 jobs, the company said.

The new office will open July 9, 2018 and support the continued strong growth BlueGrace has accomplished since its launch nine years ago.

“The unique layout of the existing office fits the BlueGrace culture of high energy and pursuing outrageous goals.” said President and CEO Bobby Harris.

“The Midwest area is rich with young, college-educated talent, and Chicago is already an elite spot for the logistics industry. The proximity of public transportation and all of the other amenities of downtown Chicago alongside this location made this an easy and logical choice for our business growth strategy to recruit, hire, and train the best and brightest young talent available.”

The company is headquartered in Tampa, Florida and has 10 regional offices across the United States.

BlueGrace has more than 500 employees and works with more than 10,000 customers to provide successful shipping solutions, the company has achieved explosive growth in its nearly 10-year operating history. Backed by a $255 million investment by private equity firm Warburg Pincus, the company operates 11 locations nationwide.

Source: Daily Herald