The owner of a vacant office building in Northbrook, IL, has teamed up with a Florida private equity firm to convert the structure into a self-storage facility.
Four years ago, Schaumburg, IL-based Crossroads Development Partners purchased the 66,000-square-foot office building at 4201 Lake Cook Road in Northbrook, IL, at a foreclosure sale for about $3 million. The firm invested another $3 million to update the building and attract a major tenant.
Despite those efforts, the building remains vacant. Enter Plan B.
Crossroads has formed a joint venture with Boca Raton, FL-based Kayne Anderson Capital Advisors, an investor in niche property types, including self-storage. The joint venture plans to convert the existing 66,000-square-foot building into self-storage units and add a second building on the site that will offer more than 62,600 square feet of storage.
The capital investment will total $15 million, according to documents submitted to the Village of Northbrook Department of Development and Planning Services. Local officials will need to rezone the property and approve several special-use permits.
The joint venture plans to tap Extra Space Storage to manage the facility.
Northbrook, a suburb of Chicago, is shaping up to be a hot spot for self-storage development. Metro Self Storage received approval to build a 57,000-square-foot facility with 843 units in Northbrook, and LifeStorage is seeking permission to demolish an office building in Northbrook and build a 1,000-unit facility on the site.
For now, the only self-storage facility in Northbrook is a StorageMart at 2727 Shermer Road.