Glenstar Recapitalizes Presidents Plaza, a Trophy Office Complex Near O’Hare International Airport, with High-Net-Worth Private Investor

CHICAGO (Oct. 29, 2024) — Chicago-based Glenstar, a national commercial real estate developer, owner and operator, and a private investor have recapitalized Presidents Plaza, a two-tower, highly amenitized office complex near O’Hare International Airport in an all-cash sales transaction that closed on Oct. 22.

In addition to purchasing the 831,442-square-foot complex for $62 million, Glenstar and its equity partner have set aside capital to fund tenant improvements, in addition to allocating nearly $16M to build spec suites along with upgrading amenities and common areas at the office property located at 8600-8700 W. Bryn Mawr Ave., in the O’Hare submarket.

“Unlike many office owners in today’s market, we are eager to help fund modern tenant improvement buildouts and amenity upgrades because we know they are critical for companies to attract top-level talent,” said Michael Klein, co-founder & managing principal of Glenstar. “With no debt on the property there are no lender constraints, and we will be creative with lease negotiations to solve tenant needs.”

The availability of capital allows tenant improvement projects to move forward quickly, as they will be insulated from interest-rate pressures and cash constraints. Spec suites will include the latest in-demand features such as open ceilings, collaborative working spaces and conference rooms with state-of-the-art audiovisual equipment.

“Companies want to be in top-tier buildings with modern, collaborative spaces,” Klein said. “Our recapitalization and upcoming capital improvements will ensure Presidents Plaza holds its title as the most highly amentized office asset in suburban Chicago.”

Initial plans call for a golf simulator and common area improvements to round out the abundant number of amenities added during the $34 million renovation of the property. The property upgrades included a redevelopment of the three-story atrium lobby, three-level health club, fully renovated lounge, café with full seating and 6,300-square-foot conference center facility. The property won the International TOBY for Renovated Building in 2022.

The Glenstar property management team will continue serving tenants on-site and via Glenstar Connect, an app-based platform to improve the tenant experience by connecting tenants with community-building events.

Presidents Plaza is centrally located at the four-way intersection of Cumberland Avenue and I-90 and offers direct access to public transportation on the CTA Blue Line, allowing tenants to recruit from both the suburbs and the city. The property is also surrounded by dining, entertainment and retail venues.

Dan Deuter, Tom Sitz and Cody Hundertmark of Cushman & Wakefield represented the seller in the Oct. 22 sales transaction. Glenstar has served as the property and asset manager of the complex since 2006.

About Glenstar:

Glenstar is a Chicago-based national commercial real estate firm specializing in industrial development, reimagined office and multifamily properties. Founded in 2004 by Michael Klein, along with Rand Diamond, Glenstar has successfully developed or redeveloped more than $2 billion in commercial space comprising 10 million square feet across the U.S. Its nimble, tenant-focused approach and vertically integrated structure allow Glenstar not only to pursue and execute opportunistic projects, but also to oversee and manage them seamlessly.