American Landmark snags logistics tenant in Schaumburg

American Landmark juiced the rent roll of a suburban Chicago office with a supply chain management firm’s new lease, right in time to sell the property with a fuller tenant roster.

Logistics business Network Services Company agreed to lease about 40,000 square feet in Skokie-based landlord American Landmark Properties’ Class A office asset called Schaumburg Towers at 1400 and 1450 American Lane, the landlord and its brokers said. 

The new deal represents a slight increase in the tenant’s commercial real estate footprint, from about 37,000 square feet it occupied less than a mile away at 1100 East Woodfield Road, a property owned by technology executive and real estate investor Ketu Amin, according to published reports and public records. It’s a small departure from the downsizing other suburban occupiers have favored while making real estate decisions amid the pandemic.

The deal also adds some momentum to Schaumburg Towers as the property is on the investment sales market — American Landmark hired Cushman & Wakefield to court buyers for the two-tower, 882,000-square-foot complex in January. It’s expected to draw bids between $110 million and $120 million.

That would get the landlord back slightly more than what it put into the property. Since buying it for $87 million in 2017, American Landmark invested $20 million in to renovations, according to Colliers and public records.

The head of the landlord firm also played a role in one of Chicago’s most memorable real estate deals: It’s led by principal and president Yisroel Gluck, a former investor in Willis Tower who was in the group that sold the city’s tallest skyscraper to Blackstone for $1.3 billion in 2015.

Back in Schaumburg, Network Services’ relocation marks the American Lane property’s fifth new lease in the past year.

“This lease signing continues the momentum established last year and shows that buildings that provide modern comforts and conveniences that today’s discerning tenants want will continue to see success in the market,” American Landmark’s John Roeser said in a statement.

Colliers’ Steve Kling and David Florent represented the landlord in negotiations. CBRE’s James Otto and Hank Cox represented Network Services Company.

With Network Services Company’s lease bringing the property’s occupancy to 78 percent, the office complex is outperforming the suburban Chicago average of 72 percent at the end of 2022, according to a fourth quarter report from brokerage Bradford Allen.

American Landmark, in a joint venture with Dallas-based Evergreen Residential, also bought a South Loop apartment tower for $180 million last year, marking one of 2022’s priciest commercial real estate trades in Chicago.