Ross Perot Jr. Eyes Huge Suburban Chicago Redevelopment Project

Ross Perot Jr. is closing in on a huge piece of suburban Chicago real estate set for transformation as its owner winds down operations after more than 60 years of controlling the property.

An affiliate of Perot’s Dallas-based firm Hillwood is in talks to buy a substantial portion of the Trinity International University campus in Bannockburn, according to the village. The proposed price has been said to be about $35 million, according to a person familiar with the situation.

While the deal hasn’t closed, it’s being negotiated as Trinity seeks to shut down much of its operations on the Bannockburn campus, which spans more than 100 acres. Perot’s firm has eyed a purchase of about 80 acres, sources familiar with the arrangement said.

Trinity last week announced that it was merging with Trinity Western University in British Columbia, Canada, following years of declining enrollment at the suburban Chicago campus. Its shutdown of most of the campus — with several buildings set to stay open, including its library and chapel — was originally planned in 2023.

Perot’s Hillwood in September held a sparsely attended community meeting to unveil an initial redevelopment proposal that involved construction of four buildings for a research and technology park on the southern end of the property. That plan would have targeted biotech and pharmaceutical firms for tenancy.

However, no formal rezoning or redevelopment applications have been submitted to Bannockburn, its Village Manager Stephanie Hannon said today. The developer hasn’t hinted to the village that its plans for the property may have changed.

Hillwood and Trinity didn’t return requests for comment.

“While we are not privy to the specific terms of the agreement between the buyer and seller, it is common in these types of transactions for the closing to be contingent upon receiving zoning or land use approvals from the village,” Hannon said. “However, since we have not been involved in those negotiations, we cannot confirm whether that is the case here.”

The Trinity property is encumbered by a $16 million bridge loan that the school took out late last year from Connecticut-based JGB Management. That debt package replaced $15 million in mortgage debt that Trinity had taken out against the property from Warren-Boynton State Bank, based in Springfield.

It’s unclear how or whether JGB’s position is factoring into the negotiations between Hillwood and Trinity.

Next door to the Trinity campus, at a midsize office building, financial distress recently weighed on a Chicago power player in commercial real estate. Chinese autoparts conglomerate Wanxiang’s CRE investment arm, led by the well-known Larry Krueger, last month handed the 134,000-square-foot office building at 2275 Half Day Road to lender Associated Bank through a deed in lieu of foreclosure. The transaction came after a Wanxiang affiliate faced a potential lengthy court battle when the lender filed a lawsuit seeking to seize the property in February.

The deed in lieu settled a $15 million loan Wanxiang had taken out after buying the property out of distress back in 2012. There was a remaining balance of more than $12 million when Associated filed to foreclose. So far, the Half Day Road office property isn’t said to be included in Perot’s plans for the Trinity campus.