The remaining piece of American Landmark Properties’ life sciences-focused campus in Skokie is going on the auction block at the end of October.
After selling most of its Illinois Science & Technology Park, the Skokie-based developer has returned to auction off its 135,900-square-foot building at 8030 Lamon Avenue and an adjacent parcel zoned for development as a parking structure, Crian’s reported.
The online auction, run by RealInsight Marketplace, is scheduled for Oct. 28 to 30. JLL’s Bruce Miller, Sam DiFrancesca, Bruce Miller and Pat Shields are marketing the property.
When American Landmark purchased the 1970s-built campus for $77 million in 2017, it invested nearly $21 million to redevelop the building into a dedicated space for life sciences research.
Renovations added a glass curtain wall, upgraded elevators, a tenant lounge and a small, move-in-ready wet lab. Despite those targeted enhancements, the building, zoned for wet lab research, office and manufacturing, has remained vacant.
The developer is hoping the combined offering will attract investors willing to seize the opportunity during the upcoming auction. The campus is 95 percent leased, according to JLL. But industry-wide challenges and a low demand for lab space could make the property a tough sell.
The vacancy rate for life sciences properties in the Chicago area stood at 40 percent halfway through the year, far above the average of 17 percent among the nation’s 13 top life sciences markets, according to CBRE.
This marks a stark contrast to the strong interest American Landmark saw just two years ago when it sold most of the Illinois Science & Technology Park campus for a combined $111 million. Singerman Real Estate purchased the majority of the life sciences labs, while a Florida-based firm acquired a fully leased office building on the site.
The auction will serve as a test of investor confidence in Skokie’s ability to sustain and grow its life sciences presence. American Landmark, known locally for its high-profile deals, including its former ownership of the Willis Tower, remains optimistic about the site’s potential.
— Andrew Terrell
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