The North American headquarters of Swedish medical device supplier Arjo is moving to Bell Works Chicagoland in Hoffman Estates.
The company inked a deal for 35,000 square feet in the eastern portion of the redeveloped former AT&T campus at 2000 Center Drive, Crain’s reported. Arjo plans to relocate by the end of the year, It will exit its 62,000-square-foot lease at Meadows Office Center I in Addison.
Colliers facilitated lease negotiations on both sides. Brokers David Burden, Tom Berarducci and Andy Gooliak represented Arjo, while Darryl Silverman and Steve Kling acted on behalf of Inspired by Somerset Development, the New Jersey-based landlord.
Inspired by Somerset, led by founder and CEO Ralph Zucker, invested $200 million into the campus redevelopment. Inspired acquired the 1.6 million-square-foot property in 2019 for $21 million ($13 per square foot) with the goal of transforming it into a “metroburb” — a mixed-use urban-style destination in the suburbs.
The eastern portion of the building, spanning 420,000 square feet, is now 90 percent leased, with tenants including security firm Convergint and branding company Club Colors.
“It’s really beginning to fill up,” Zucker told the outlet. “There are a lot more people, and that is causing a lot of the retail to come alive.”
The company plans to start construction this spring on 164 townhomes near the office complex, adding a residential component to the campus.
It also plans to develop the campus’ western portion, which remains largely untouched since AT&T vacated the campus over eight years ago. The firm has not disclosed the cost of renovating the western section but confirmed its readiness to move forward.
Arjo’s exit from 2349 West Lake Street in Addison isn’t surprising. Stotan Industrial acquired the building, Meadows Office Center I, last year for $8.2 million.
The Chicago firm, headed by CEO Jim McGill, plans to redevelop the site into a 135,000-square-foot warehouse to capitalize on Chicago’s low industrial vacancy rate of about 4.88 percent as of September, according to Colliers.
— Andrew Terrell
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