American Landmark Properties Completes $87M Purchase Of Schaumburg Towers

Courtesy of American Landmark Properties
Schaumburg Towers, Schaumburg, Illinois

American Landmark Properties completed its acquisition of Schaumburg Towers. The sales price for the twin 21-story towers was not disclosed. When the deal was first announced in January, it was reported American Landmark Properties agreed to buy the property for $86.7M.

The building, best known as Zurich North America's former headquarters, is nearing completion of an 18-month, $10M capital improvement program by the seller, Retail Properties of America. Those improvements include a fitness center, a new cafeteria with casual dining, WiFi lounge, conference center, outdoor plaza and amphitheater capable of hosting all-hands meetings.

The property was 48% vacant, according to an investment memorandum, but leasing activity has been on the upswing since Zurich vacated the buildings two years ago. Over 400K SF of new leases have been signed, with major tenants including Paylocity, Great American Insurance and SwissRE.

American Landmark Properties' goal is to bring the occupancy rate to 90% within the next 24 to 26 months, and the company has a five-year hold strategy in place where it expects a 22% internal rate of return for investors upon exit.

Colliers International's Steve Kling, David Florent and Jason Simon were retained as the leasing agents for the property.

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