Franklin Partners buys former OfficeMax HQ with plans to revamp

The developer will lease out the Naperville building in small pieces

Apr.April 24, 2018 09:20 AM

The former OfficeMax headquarters in Naperville

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

Related Articles

Takeda headquarters in Deerfield, Illinois. Savills broker Eric Feinberg.

Pharma giant wants to quickly unload 1.3M sf suburban campus. But who wants it?

Mirae’s Chicago challenge: Sell an office tower when no one’s buying

Chicago real estate titans throw Biden fundraisers, Sterling Bay office projects get green light: Daily digest

PepsiCo CEO Ramon Laguarta and WeWork CEO Adam Neumann with the Old Post Office (Credit: Getty Images)

Space race: WeWork, PepsiCo may take a combined 320K sf at 601W Companies’ Old Post Office

Chicago casino operator probably won’t make much money, Tishman Speyer poaches JLL broker: Daily digest

Homes in Chicago's Archer Heights neighborhood (Credit: iStock)

Chicago Cheat Sheet: Chicago home value growth hits 3-year low, another suburban corporate exodus…& more

The Jeffery Towers portfolio

As South Shore booms, local investor seeks a big payout on 4-building portfolio

Kasa Living Founder and CEO Roman Pedan and One Superior Place (Credit: LinkedIn and One Superior Place)

In crowded multifamily market, this landlord is making a short-term rental play in River North