Franklin Partners bought the former OfficeMax headquarters in Naperville, with plans to revamp the 350,000-square-foot property and lease it in smaller pieces.
The suburban developer plans to revamp and lease it in smaller pieces, according to Crain’s.
OfficeMax moved out of the building at 263 Shuman Boulevard three years ago. The previous owner gave up the property after being unable to pay back $49 million it owed, according to Crain’s, which first reported on the acquisition.
Franklin partner Ray Warner declined to disclose the purchase price but said he plans to spend “several millions” to redevelop the five-story property into something that will stand out from other suburban office offerings.
Construction is set to begin later this year with the building ready for occupancy in 2019.
Data from brokerage JLL showed suburban office vacancy remained at 23.3 percent in the first quarter, unchanged from the end of 2017.
A number of large former corporate campuses like the OfficeMax complex are mentioned as contributors to the vacancy rates, like the former GE Healthcare property in Barrington and the former Motorola headquarters in Schaumburg. But Schaumburg officials are looking at ways to convert the Motorola property into a large mixed-use development, and New Jersey-based Somerset Development is reportedly eyeing the former AT&T campus in Hoffman Estates for a similar overhaul. [Crain’s] — John O’Brien