BACKGROUND
4000 Commercial Drive, a 293,937-square-foot industrial property, was originally developed in 1976. Motorola purchased the property in the late-90s and converted the two-floor building to office space. In 2005 the building was sold to CenterPoint Properties, and Colliers Bennett & Kahnweiler Inc. (Colliers B&K) was engaged to lease the property which was still partially occupied by a division of Motorola.

CenterPoint was seeking a value creation opportunity and utilized the Colliers B&K team to help bring this vision to fruition. CenterPoint’s willingness to renovate the property resulted in securing Walgreen Corp. as a 70,000-square foot tenant in 2005. Walgreen, which was originally considering only more traditional office space, was now very interested in the property’s ability to house it 24-hour call center and IT help desk. After the successful lease negotiation, CenterPoint requested that Colliers B&K market the property for sale.

APPROACH
In the marketing campaign, Colliers B&K focused on the benefits of the building including its convenient location on interstate 294 and its large 27-acre land site. Knowing that Walgreen could potentially be interested in growing within the facility, the feasibility of a user sale seemed even more likely.

RESULTS
The $15,285,000 sale to Walgreen Corp. was completed in January 2007. Significant value was created for former owner CenterPoint Properties, while Walgreen now has the flexibility it was seeking for future expansion.

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