Glenstar Acquires Schaumburg Corporate Center
SCHAUMBURG, IL—GlenStar Properties has already proven that many companies still find northwest suburban office properties attractive. And the Chicago-based firm is prepared to do so again. It just acquired John Hancock Real Estate’s Schaumburg Corporate Center, a three building, one-million-square-foot complex located at 1475, 1501 and 1515 E. Woodfield Rd. in Schaumburg, IL. The buildings have not changed hands since they were developed in the 1980s.
Tenants currently occupy 72% of the space. That is a higher rate than the nearby Continental Towers complex had when GlenStar bought it in 2013. That 911,341-square-foot campus was once less than 50% occupied, but after a two-phase, multi-million dollar renovation effort, the vacancy rate dropped below 10%. Company officials see a chance to do likewise with their newest acquisition.
“This was an attractive opportunity to purchase a quality asset in a premier infill location,” says GlenStar managing principal Michael Klein.
The amount paid was undisclosed, but Cook County property records show a price tag of $70,749,500.
The center already has a number of existing advantages. It is one of only a handful of LEED Certified Gold office properties in the submarket, and has a full roster of amenities including a fitness center, cafeteria, convenience store, hair salon, lounge area, conference center, dry cleaner and below grade executive parking.
Furthermore, the 1501 building has a 17,000 square foot, glass-enclosed atrium, the only one of its kind in the suburban office market.
“With today’s heavy emphasis on creating contemporary and unique work environments to attract top level talent, Schaumburg Corporate Center is right on target,” adds Klein.
The complex was developed in three phases beginning in 1980. The four-story, 380,000-square-foot building at 1501 was the first. The other two – 1515 and 1475 – are both 14 stories with slightly more than 300,000 square feet and were built in 1986 and 2002 respectively.
Notable tenants include Pepsi, Verizon, Motorola Employees Credit Union, American Agricultural Insurance Co. and Roanoke Insurance Group.
GlenStar will immediately launch an approximately $30 million renovation program to upgrade it to a true class A asset.
“Schaumburg Corporate Center has a great foundation to build upon,” says Klein. “We are looking forward to creating a premier office environment.”