CHICAGO—Middleton Partners, a Northbrook, IL-based real estate investment firm, has just acquired Tallgrass Corporate Center, a class A, 533,365-square-foot office complex in southwest suburban Bolingbrook, from Equus Capital Partners, Ltd., for more than $65 million.

Tallgrass is the most notable office property in this corner of the suburbs, an industrial area more widely recognized as a mecca for distributors. The asset, which represents almost half of the 1.1 million square feet of class A office space market in the area, is 100% leased. Its distinctive profile is one reason Middleton officials consider it a great long-term investment.

“We like to buy things that are not necessarily on the top of anyone's shopping lists,” Peter Holstein of Middleton tells GlobeSt.com. “And this is not a conventional office market.” Still, “it's a very stable asset, and the office submarket is, compared to other suburban submarkets, relatively stable.” Furthermore, there are “few buildings in the area that have floor plates this large.”     

Tallgrass, located at 1000 Remington, was originally developed in 1993 as a corporate headquarters and research and development facility for Tellabs. But Tellabs eventually left, and in 2004 Equus acquired the then vacant property. Equus considered several options, says Holstein, including industrial or flex use, but soon “realized that there was a lot more demand for office space.” The company invested about $18 million, and transformed it into a state-of-the-art, multi-tenant office facility.

“It was originally built by a tech company,” he adds, and provided with an advanced infrastructure, including three power feeds from two substations and redundancy of fiber optics, which tenants can still use to their advantage. “It has no functional obsolescence, especially when compared to other suburban properties. Equus had real insight, and saw what this property could be.”  

Tenants at Tallgrass, many of which have occupied space for nearly 10 years, include ULTA Beauty, 267,535 square feet; Presence Health, 103,825 square feet; Quad Graphics, 70,880 square feet; and AMITA Health, 69,804 square feet. In the last 30 days, ULTA completed a 57,667-square-foot expansion of its space. The weighted average remaining lease term of those tenants is 7.4 years.

Converting the Tellabs corporate facility was a huge undertaking. Equus created two main lobbies and 12 secure entry points around the perimeter of the property. In addition, the company transformed 130,000 square feet of former high-bay manufacturing space into class A office space. The new amenity package at Tallgrass includes a large, full-service cafeteria, a modern fitness center, a walking path and a five-acre pond. 

In addition, Equus built a series of formal meeting and casual collision spaces to promote collaboration. These spaces include a 225-seat auditorium, a 25-seat conference room, numerous open seating areas throughout the building, and a series of outdoor patios.

Middleton Partners has retained Colliers International as the exclusive management and leasing firm for Tallgrass.

“Tallgrass truly is a unique property,” says Francis Prock, principal, who along with David Florent, both of Colliers, has been marketing the property for lease for more than 10 years. “The greatest attributes of the property include the amenity package and the building infrastructure that would be extremely difficult to replicate.”

Holstein says Middleton has recently purchased several similar properties. The company focuses on well-leased buildings, usually in the $50 to $80 million price range, in stable markets such as Minneapolis, Chicago, Columbus and Denver. This type of low-risk investing “does not require a lot of heavy lifting.” But it does help balance out Middleton's other development work. “The overall combination works very well.”   

Equus was represented in the sale transaction by James Postweiler and Peter Harwood of the capital markets division of JLL.

CHICAGO—Middleton Partners, a Northbrook, IL-based real estate investment firm, has just acquired Tallgrass Corporate Center, a class A, 533,365-square-foot office complex in southwest suburban Bolingbrook, from Equus Capital Partners, Ltd., for more than $65 million.

Tallgrass is the most notable office property in this corner of the suburbs, an industrial area more widely recognized as a mecca for distributors. The asset, which represents almost half of the 1.1 million square feet of class A office space market in the area, is 100% leased. Its distinctive profile is one reason Middleton officials consider it a great long-term investment.

“We like to buy things that are not necessarily on the top of anyone's shopping lists,” Peter Holstein of Middleton tells GlobeSt.com. “And this is not a conventional office market.” Still, “it's a very stable asset, and the office submarket is, compared to other suburban submarkets, relatively stable.” Furthermore, there are “few buildings in the area that have floor plates this large.”     

Tallgrass, located at 1000 Remington, was originally developed in 1993 as a corporate headquarters and research and development facility for Tellabs. But Tellabs eventually left, and in 2004 Equus acquired the then vacant property. Equus considered several options, says Holstein, including industrial or flex use, but soon “realized that there was a lot more demand for office space.” The company invested about $18 million, and transformed it into a state-of-the-art, multi-tenant office facility.

“It was originally built by a tech company,” he adds, and provided with an advanced infrastructure, including three power feeds from two substations and redundancy of fiber optics, which tenants can still use to their advantage. “It has no functional obsolescence, especially when compared to other suburban properties. Equus had real insight, and saw what this property could be.”  

Tenants at Tallgrass, many of which have occupied space for nearly 10 years, include ULTA Beauty, 267,535 square feet; Presence Health, 103,825 square feet; Quad Graphics, 70,880 square feet; and AMITA Health, 69,804 square feet. In the last 30 days, ULTA completed a 57,667-square-foot expansion of its space. The weighted average remaining lease term of those tenants is 7.4 years.

Converting the Tellabs corporate facility was a huge undertaking. Equus created two main lobbies and 12 secure entry points around the perimeter of the property. In addition, the company transformed 130,000 square feet of former high-bay manufacturing space into class A office space. The new amenity package at Tallgrass includes a large, full-service cafeteria, a modern fitness center, a walking path and a five-acre pond. 

In addition, Equus built a series of formal meeting and casual collision spaces to promote collaboration. These spaces include a 225-seat auditorium, a 25-seat conference room, numerous open seating areas throughout the building, and a series of outdoor patios.

Middleton Partners has retained Colliers International as the exclusive management and leasing firm for Tallgrass.

“Tallgrass truly is a unique property,” says Francis Prock, principal, who along with David Florent, both of Colliers, has been marketing the property for lease for more than 10 years. “The greatest attributes of the property include the amenity package and the building infrastructure that would be extremely difficult to replicate.”

Holstein says Middleton has recently purchased several similar properties. The company focuses on well-leased buildings, usually in the $50 to $80 million price range, in stable markets such as Minneapolis, Chicago, Columbus and Denver. This type of low-risk investing “does not require a lot of heavy lifting.” But it does help balance out Middleton's other development work. “The overall combination works very well.”   

Equus was represented in the sale transaction by James Postweiler and Peter Harwood of the capital markets division of JLL.