Zurich North America's former twin towers headquarters in Schaumburg is under contract. American Landmark Properties is buying Schaumburg Towers, the mostly vacant 21-story buildings, for $86.7M, Crain's Chicago Business reports. American Landmark Properties has big ambitions for the complex.

The 882K SF property is 48% vacant. According to an investment memorandum, American Landmark Properties expects to increase the occupancy rate to 90% over a 24- to 36-month period. The firm is planning a five-year hold, with a projected 22% internal rate of return for investors upon exit. The firm is betting Schaumburg Towers' location near Woodfield Mall and increased investor interest in suburban real estate will rebound.

There are already signs that is happening. GlenStar Properties paid $80M for the nearby Schaumburg Corporate Center last year. Paylocity has an option to lease an additional 116K SF at Schaumburg Towers.

American Landmark Properties is raising nearly $30M from investors for the acquisition and plans to spend another $60M on capital improvements to the building. Schaumburg Towers is American Landmark Properties' second notable suburban acquisition of the past year. The firm paid TA Associates $24M for One and Two Oak Brook Place in June 2016. American Landmark Properties sold Willis Tower to Blackstone Group for a record $1.3B in 2015.

The seller, Retail Properties of America, put Schaumburg Towers on the market August.