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American Landmark Properties Wraps Up $86.6 Million Purchase of Schaumburg Towers

RPAI Sells Paylocity HQ in Suburban Chicago
June 6, 2018
American Landmark Properties, the Skokie, IL-based commercial real estate investor and former owner of the Willis Tower, has closed on its previously announced purchase of the Schaumburg Towers in Schaumburg, IL, in an $86.6 million deal.

Retail Properties of America disclosed in its first quarter earnings release it anticipated its sale of the two-building, 882,071-square-foot office complex in suburban Chicago to go through in the second quarter. The twin 21-story towers traded for $98 per square foot.

Originally completed in 1986, the Class A suburban towers had served as the North American headquarters of Zurich American Insurance Co. for more than a decade before the Swiss-based insurance group relocated to its brand new 783,800-square-foot corporate office complex, also located in Schaumburg, in 2016.

The move rendered the Schaumburg Towers vacant - and in such disrepair that Retail Properties of America sued its former tenant for $75,000 for failing to properly maintain the property - before Paylocity, a provider of cloud-based payroll and human resources software to midsized organizations, signed a 15-year lease for 309,000 square feet in the towers for its corporate headquarters. Great American Insurance and SwissRE have also since signed leases in the towers.

The Schaumburg Towers are connected at the base by a three-story atrium, and include two five-story parking garages. The complex is nearing completion on an 18-month, $10 million value-add initiative that includes upgrades to the fitness center, a cafeteria with dining, Wi-Fi lounge, conference center, outdoor plaza and amphitheatre.


American Landmark Properties has retained Steve Kling, David Florent and Jason Simon of Colliers International to market the towers. Pearlmark arranged a $14.5 million mezzanine loan on behalf of the buyer.

Please see CoStar Comp #4279178 for more information on the transaction.
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