Buyer of Allstate campus seeks to build warehouses on site

Dermody needs local government approval for industrial development

Chicago /
Nov.November 30, 2021 12:05 PM
Dermody Properties President Doug Kiersey and the Allstate headquarters building at 2775 Sanders Road in Northbrook (Dermody, Allstate)

Dermody Properties President Doug Kiersey and the Allstate headquarters building at 2775 Sanders Road in Northbrook (Dermody, Allstate)

The Nevada industrial developer that agreed to pay $232 million for Allstate’s suburban Chicago campus aims to transform the site into 3.2 million square feet of warehouses — assuming it gets the approval of local governments.

Dermody Properties plans to build 11 industrial buildings after it demolishes Allstate’s campus at 2775 Sanders Road in Northbrook, Crain’s reported, citing Dermody President Doug Kiersey. Dermody hopes to build at least one warehouse by the end of 2023.

The deal reflects a pandemic-era shift for Chicago’s commercial real estate, as companies like Allstate reduce office space and retailers seek more warehouses to meet surging e-commerce demand. Allstate said in October that it would sell the headquarters, its home for more than 50 years, as about 95 percent of employees in Northbrook choose to work from home.

Dermody needs the green light from Glenview, Northbrook and Prospect Heights neighborhoods to move forward. Residents in other parts of Chicago have opposed warehouse developments, saying a slew of delivery trucks would add pollution and traffic congestion.

Kiersey said his company will work with communities and that it plans to maintain a landscape buffer by planting trees and stormwater management ponds along Sanders Road and Interstate 294. He noted that infrastructure around the campus is already designed to handle thousands of employees and vendors each day at peak times.

Dermody may contact Glenview or another suburb about its plans before it pushes forward with its development, the outlet reported.

“We want to go where we’re wanted,” Kiersey told Crain’s.

[Crain’s] — Connie Kim





    Related Articles

    arrow_forward_ios
    401 West Touhy Avenue, Des Plaines and Brad Jacobs, CEO of XPO Logistics with Realterm Logistics CEO Robert Fordi (Google Maps, LinkedIn, Realterm)
    XPO sells suburban Des Plaines industrial site in $50M sale-leaseback deal
    XPO sells suburban Des Plaines industrial site in $50M sale-leaseback deal
    Henry Kravis, co-founder and co-executive chairman, KKR (KKR); and Logistics Property In Suburban Chicago area (Crow Holdings)
    KKR fund buys 923K sf three-building logistics property in suburban Chicago as part of $264M deal
    KKR fund buys 923K sf three-building logistics property in suburban Chicago as part of $264M deal
    Duke Realty buys still more Chicago property, expanding to suburbs
    Duke Realty buys still more Chicago property, expanding to suburbs
    Duke Realty buys still more Chicago property, expanding to suburbs
    Tinley Park Corporate Center at 18801 Oak Park Avenue, Blackstone CEO Stephen Schwarzman and Exeter Property Group CEO Edward Fitzgerald (Lee & Associates, Getty, Ehlers-Danlos Society)
    Blackstone sells suburban Chicago industrial space
    Blackstone sells suburban Chicago industrial space
    (iStock)
    Chicago industrial rent at all-time high as vacancies drop
    Chicago industrial rent at all-time high as vacancies drop
    Investor duo snaps up eight-property industrial portfolio
    Investor duo snaps up eight-property industrial portfolio
    Investor duo snaps up eight-property industrial portfolio
    Amazon founder Jeff Bezos and an aerial of 1260 North Kostner Avenue (Getty, Google Maps)
    Amazon faces local opposition to warehouse in Chicago’s West Humboldt Park
    Amazon faces local opposition to warehouse in Chicago’s West Humboldt Park
    Blackstone gets $690M financing for 44 industrial properties
    Blackstone gets $690M financing for 44 industrial properties
    Blackstone gets $690M financing for 44 industrial properties
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...