LG Group is in the running to transform a massive former Walgreens Boots Alliance office complex in Deerfield into an entertainment and retail complex.
The firm, headed by CEO Brian Goldberg and most known for its downtown Chicago multifamily portfolio, is under contract to buy the 37.5-acre property featuring five office buildings at 1411-1435 Lake Cook Road, Crain’s reported. The deal is contingent on whether Deerfield officials approve the ambitious redevelopment project in the northern suburb. The terms were not disclosed.
The vacant site, just north of Edens Spur Tollway, comprises 575,000 square feet of office space now. While LG Group’s exact plans remain to be seen, a recent village board meeting could be a clue. Officials approved the creation of a new “entertainment and limited retail business district” that includes the Lake Cook Road property, allowing for an array of uses, such as retail, restaurants and entertainment.
The entertainment aspect could feature “golf driving ranges with entertainment,” mini golf, skating rinks, bowling alleys, restaurants with live entertainment, a comedy club and virtual reality games. An apartment building could be part of the project, as well.
LG hasn’t submitted a formal proposal yet, but the new zoning district gives the developer suggestions as to what village officials would like to see, assuming the property isn’t revived as an office complex.
“It’s a proactive approach to allow for the redevelopment of this site,” Deerfield assistant village manager Andrew Lichterman told the outlet.
The deal exemplifies the changing landscape for office properties in the wake of the pandemic. With more people working from home, companies are cutting back on commercial real estate, pushing vacancy rates to record highs. The bleak outlook for Chicagoland’s office sector has prompted a handful of developers to repurpose beleaguered properties, whether that be into industrial, residential or entertainment uses.
In Schaumburg, a venture led by Chicago-based UrbanStreet Group is converting the former Motorola Solutions campus into a 225-acre mixed-use campus that includes luxury apartments and a Topgolf driving range.
Dermody Properties is going the industrial route with its redevelopment project in Glenview. The firm is transforming the 232-acre former Allstate campus into five warehouses totaling more than 1.2 million square feet.
— Quinn Donoghue
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