CHICAGO—The former Allstate Headquarters Building on the West Side was until recently considered one of the city's most endangered historic structures, but its owner the Royal Imperial Group believes it and the surrounding neighborhood have redevelopment potential. The Chicago-based developer has hired Newmark Grubb Knight Frank as the building's exclusive leasing agent and will commence a 14- to 16-month redevelopment when it secures an anchor tenant.

“There are a lot of companies that don't want the congestion or anonymity of being in the central business district,” NGKF's Ted Prillaman, senior managing director, tells GlobeSt.com. And occupying a significant portion of the 11-story, 300,000 square-foot building at 3245 W. Arthington St., now called Westgate Tower, will allow a company to forge a unique identity but retain the prestige of a Chicago address, he adds.

“Once the renovation is done, we will be able to deliver what will essentially be a new space in a new building at a very low cost,” Prillaman says. Premium space in the CBD typically rents for $40 to $50 per square foot gross, but for the initial anchor tenant, NGKF is shooting for about $29 to $30.

The capital improvements to Westgate Tower will include the addition of a rooftop deck, sky lounge, exercise, recreational and lounge areas, new elevators, building systems, finishes, and on-site secured parking.

Built in 1948 for Allstate Insurance when the company was part of Sears, it sits on the east end of the retailer's former campus. Designed by the renowned architectural firm Carr & Wright, the tower was the first multi-story building constructed in Chicago after World War II, and offers a rare example of immediate post-war modern construction.

“We're looking to keep much of the building as it was in 1948,” Prillaman says, including its brick façade and the interior's marble and terrazzo finishings. “All of these features give it a special appeal. The building will get an update, but it will not morph into something else.”

Prillaman says that NGKF will take a broad approach as it looks for that first anchor tenant. He believes the property, which offers panoramic views of the entire city, will appeal to a major tech company or perhaps a large, well-heeled nonprofit. The property's location just west of the Illinois Medical District also makes it convenient for any group connected to that complex.

Other developers have hatched plans that will transform the surrounding area over the next few years. The medical district, for example, is moving forward with a $300 million mixed-use development. In addition, Eco Development is completing Eco Square, a 150-unit mixed-use development with houses, townhomes, and condos.

“It gives people comfort that a lot of money is being spent in the neighborhood,” says Prillaman.