Dermody Sells Former Allstate Headquarters

Industrial developer Dermody is starting to shed portions of the 232-acre former Allstate headquarters at 2775 Sanders Road in Glenview that the company bought in 2022.

Reno, Nevada-based Dermody sold a portion of the campus split among two parcels to San Diego-based real estate investment firm Realty Income for $175 million, public records show.

Dermody bought the insurance giant’s campus in 2022 for $232 million after the pandemic upended the office market and began redeveloping the site into an industrial campus with 10 warehouses totaling 3.2 million square feet.

When Allstate agreed to sell the property to Dermody, the Village of Glenview also agreed to an incentive package for the developer as the project stands to generate around $135 million in tax revenue.

The developer finished the first phase of its redevelopment plan which totaled 1.2 million square feet across five warehouses.

The status of the remaining phases of the development is unclear. Tim Walsh, Dermody’s chief investment officer, declined to comment on the sale but said that the firm “is pleased with the project and remains committed to the community and customers it serves.”

Representatives of Realty Income did not respond to requests for comment.

Leasing efforts have been mixed so far.

Berkeley, California-based lab-grown meat producer Upside Foods said in 2024 that it was pausing efforts to build out its planned 187,000-square-foot facility within the industrial campus.

Prior to pulling the plug on the project, Upside Foods said it expected to invest $141 million on the project referred to as Rubicon, with plans to open in 2025 and have 75 employees.

Among successes on the campus, Dermody secured a 351,520-square-foot lease with PepsiCo in 2025 to take over one of the warehouses for use as a logistics facility. Chicago-based dental equipment manufacturer HuFriedy Group also signed a 326,278-square-foot lease at the industrial campus that same year.

While offloading portions of the Allstate Campus, the developer also sold a separate industrial property at 837 South Riverside Drive in Elmhurst to Realty Income for $41 million, bringing Realty Income’s total investment in Dermody’s Chicago area industrial properties to $216 million, public records show.

Dermody last refinanced the property for $27 million with a loan from New York Life Insurance in early 2025, DuPage County records indicate.