CHALLENGE

Since 1857 Klein Tools, a family-owned and operated company, has been designing, developing and manufacturing premium-quality, professional-grade hand tools. 

The nine-acre parcel at the northwest corner of Touhy Avenue and McCormick Boulevard in Skokie, IL housed a manufacturing building that served as Klein Tools’ headquarters for decades prior to its construction of a new build-to-suit facility in Lincolnshire, IL.  Klein Tools continued to utilize the property for manufacturing until mid-2013. There were significant environmental concerns at the site related to soil contamination and insufficient soil stability. Colliers International was hired to assist with a disposition of the site that addressed these challenges.

STRATEGY

The Colliers International team began by identifying the highest and best use for the property as retail/mixed-use.  The team leveraged extensive relationships to identify potential tenants for a mixed-use redevelopment. The Colliers team also engaged its project management professionals to provide recommendations for an engineered solution that would address the soil contamination issues.

RESULTS

The Colliers teams’ extensive relationships led to the identification of Mariano’s Fresh Market, a rapidly growing specialty grocer, who could serve as an anchor tenant in the high-profile redevelopment.

The Colliers team utilized a professionally managed sealed-bid process to secure 11 proposals from retail developers and the site was ultimately sold to Centrum Properties for more than $1,000,000 per acre.  

Centrum Properties is constructing a 75,000-square-foot Mariano’s Fresh Market on the site, which is located across from the Lincolnwood Town Center mall. Other plans for the site include a Longhorn Steakhouse, a bank, and other retail facilities.  The project will be complete in the second quarter of 2015.