January 29, 2023

An industrial developer has struck a deal to purchase the 101-acre headquarters of medical device company Baxter International, which is likely to build a second redevelopment of a massive Fortune 500 corporate campus in Chicago’s northern suburbs as part of a national trend.

Bridge Industrial plans to buy the Deerfield, Illinois campus that Baxter pitched last spring as a redevelopment project, according to people familiar with the deal.

If the deal closes and the Chicago-based warehouse developer receives planning permission for a new development, it would be the second high-profile example of a sprawling suburban office campus to be demolished and replaced with new warehouses.

Late last year, Nevada’s Dermody Properties began demolishing buildings on the 232-acre campus of the former Allstate headquarters in Glenview, Illinois, where a 10-building logistics campus is planned purchase of the site from the insurance giant for $232 million.

Dated, sprawling suburban office campuses are being sought, including plans, for similar conversions in other areas of the country Rebuild 62 hectares of the US headquarters of Novartis in New Jersey in the industrial room. Also in New Jersey, the former Toys R Us campus is to be redesigned for a mixed use traditional offices are not expected.

Older office campuses have become coveted by industrial developers in recent years as office demand has eased nearly three years after COVID-19 and demand for warehouses has skyrocketed. Lease now has slowed down amid rising interest rates and a shaky economy.

Offices are not the only type of property earmarked for conversion into commercial space. In another Chicago-area deal recently, short-term storage space provider Cubework closed bought a former Sears store at a mall in Orland Park, Illinois.

A sale price for Baxter’s campus has not been determined and Bridge Industrial’s specific plans for the site are unclear.

It’s also unclear where Baxter’s top executives will be based if the property sale closes as expected.

“We can confirm that we have identified a potential buyer for our current Deerfield property and will be working with them on due diligence activities while we search for a new headquarters,” Baxter said in an email to CoStar News sent statement. The statement did not name the buyer or potential sites for a new Baxter headquarters.

Bridge executives did not respond to requests for comment.

Bridge’s deal for the property was first reported by Crain’s Chicago Business.

The campus at 1 Baxter Parkway is off Lake Cook Road and Interstates 94 and 294 in Lake County, approximately 25 miles north of Chicago’s Loop business district.

Built in the 1970s, the campus has 10 low-rise buildings totaling 645,688 square feet of office space, according to marketing materials from JLL, which is representing Baxter in the sale. According to the information, the campus has 1,479 parking spaces.

Other companies headquartered nearby include Walgreens and Horizon Therapeutics. Another big company, Caterpillar, recently moved its headquarters from Deerfield to Irving, Texas.

Bridge is developing industrial sites around the world, including a ongoing renovation an 87-acre former Navistar International truck engine plant in Melrose Park, Illinois, near O’Hare International Airport. Before groundbreaking last year, Bridge signed two leases covering nearly 1.4 million square feet for the two-building, $250 million project.

Baxter will be represented in the sale by JLL broker Scott Miller.

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