The lease is one of the largest suburban lease transactions in the past 12 months in the Chicago area, and is valued in excess of $26 million. Lease incentives included a tenant improvement package and free rent, Podolsky says. Additionally, "the building owners agreed to add a fitness center [and] they will maintain the cafeteria for Jewel and the other tenants," he says. Podolsky and John Homsher, principal with Podolsky Northstar, represented Jewel. Pat McKillen, partner with Hamilton Partners, represented ownership.
Jewel, which is a wholly owned subsidiary of Minneapolis-based SuperValu Inc., will be moving its headquarters to the new location from 1955 W. North Ave., where it has been located for 53 years, Homsher says. "That was their original headquarters," he says.Jewel currently occupies a 110,000-sf building that is inefficient and has some extra storage that is not in use, Homsher says.
Jewel has not decided if it will sell the existing headquarters. The property is part of a campus and is located in an area with a mix of industrial, office, retail and residential, Podolsky says. Jewel was attracted to the new building because of a "combination of location, image and their ability to be the major tenant," Podolsky says.
Itasca is a central location for employees to travel to Jewel stores and a central location for employees traveling to the headquarters, Homsher says. The building has frontage on Thorndale and, as the major tenant in the building, will have signage.
Jewel is expected to move into the new location on Aug. 1. Jewel will occupy 55% of the building with the rest of the building currently vacant. The 184,549-sf building was constructed in 2002 and is part of Hamilton Lakes Corporate Park. Amenities include covered parking, day care and restaurants, Podolsky says. The asking lease rate for the building is $25.50 per sf, gross.
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