Mike May is the project manager and Chuck Panagakis is the project engineer for Morgan/Harbour, with The Jenkins Group providing architectural services. FedEx was represented in the transaction by Cushman & Wakefield, while Mike Rolfs represented developer Hamilton Partners in the lease, as a partner with the company.
"FedEx liked the location, the proximity to its existing facility, and the proximity to the expressways, where it is between Interstate 94 and Interstate 294," Rolfs tells GlobeSt.com. "These buildings have done really well, and it's space in a really good market."
Rolfs declined to comment on the cost of the build-out, which will renovate a floor-and-a-half in the 12-story building. Previously occupied by Allstate Insurance, the office required some modifications to its layout in order for the space to be efficient for FedEx. Work includes installation of two teleconference rooms, a high-capacity back-up generator, and robust data infrastructure to meet the company's high-speed data needs. After the renovations, the office will represent a mix of 30% private offices and 70% open space, and house 100 FedEx employees. The 10-year lease commences on Nov. 1. Rolfs declined to comment on FedEx's lease rate, but average lease rates for office space in the area are around $25 per sf.
The Buffalo Grove Riverwalk Facility, at the northeast corner of the intersection of Milwaukee Avenue (Rt. 21) and Lake Cook Road, is comprised of two 250,000-sf, 12-story towers, which are connected with a building concourse containing a fitness center, food service and convenience retail shopping. Parking is attached to both buildings. Developed in 1990 by Hamilton Partners and owned, leased and managed by them ever since, the buildings are now 95% occupied. The development is located in the north submarket, which Rolfs puts at around an 85% occupancy rate. "It's probably the healthiest of the Chicago suburban markets," Rolfs says. "Most people in the market realize they have to have an allowance for build-out."
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