The Elk Grove Village-based snack food maker shifted gears last year, deciding to buy the Panasonic property rather than the former Elgin Mental Health Center further east. Having spent $6.3 million on the state facility, John B. Sanfilippo & Son still plans to pour in another $1.7 million to redevelop the site and then sell it, according to a recent Securities and Exchange Commission filing.
The company had been in the market for build-to-suit facility when the Panasonic campus became available, says Grubb & Ellis vice president Frank Griffin. However, the property was not heavily marketed, adds senior vice president Brian Carroll, who represented John B. Sanfilippo & Son with Griffin and senior associate Dominic Carbonari.
John B. Sanfilippo & Son owns and leases a total of 900,000 sf in six buildings along Arthur Avenue and Busse Road in that northwest suburb, as well as Touhy Avenue in Des Plaines and Malmo Drive in Arlington Heights. John B. Sanfilippo & Son already has received bids for the buildings it owns. Besides meeting present and future space needs, the consolidation is expected to increase production capacity by 25% to 40%, according to the company.
Meanwhile, Panasonic Corp. is moving operations from the Randall Road complex to other holdings in Elgin as well as Hanover Park, but will lease back 185,000 sf in the office building for three years, with options that could extend to 2015. Panasonic Corp., represented by Paine Wetzel/Oncor International senior vice presidents Greg Wright and Les Spinner, will pay rent for the entire warehouse through this month and 75,000 sf through September.
John B. Sanfilippo & Son swung the deal for the Panasonic campus by using money from the sale of $65 million in senior unsecured notes. The 10-year notes carry a 4.67% interest rate, according to company filings with the SEC.
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