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.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

SFF Realty Partners Extends Spending Spree With $82M Acquisition In Downtown San Jose

Years Later, Millions In Chicago Housing Projects Remain Unbuilt

Drawbridge Realty Acquires 180K SF Office Building In Sunnyvale For $219M

Downtown Los Angeles Retail, Office Hub The Bloc Up For Sale

Distress Divide: How Private vs. Institutional Investors Are Thinking About D.C. Office

Interest Rate Hike Douses Outlook For Atlanta Developers

Chicago Office Deals Feature More Scrutiny, Added Tenant Protections

Tishman Speyer Retakes Chrysler Building, Plans $235M Renovation

Local Investor Pays $30M For Block 37 In Heart Of Downtown Chicago

Activist Investor Buys Stake In Empire State Building Owner

San Francisco Office Market Climbs, Fueling Demand For Large Blocks, Luxury Space

Major Movie Studio Campus Breaks Ground: The Chicago Deal Sheet