chi-2900golfPrimaryPhoto (2) 2900 Golf Rd. in Rolling Meadows, IL

CHICAGO—Office landlords in the northwest suburbs have signed a number of significant deals lately, especially those that operate the top class A properties, but under the radar, older, mid-range properties have changed hands with increasing frequency.

Arthur J. Gallagher & Co., the global insurance giant, has just bought 2900 Golf Rd. in Rolling Meadows. Originally built in 1978, the 48,000-square-foot, two-story office property sits on seven acres just east of I-290, and was just one of several similar office properties recently sold, mostly to companies that have decided to expand.

“Interest rates are at historic lows, and debt is relatively easy to get, especially if you have a stable or growing business,” Jason M. Simon, principal with Colliers International, tells GlobeSt.com. And once the economic recovery took hold, many business owners in the area started using that debt to buy older but still functional properties. Furthermore, SBA loans make it possible for some buyers to put down only 10% in equity

“Gallagher is currently renovating an adjacent property that it is utilizing for its global headquarters,” he adds. “The 2900 Golf property represented an opportunity for Gallagher to secure additional space with immediate proximity to the new headquarters which will eventually house over a thousand employees and make Gallagher one of the largest employers in Rolling Meadows.”

Simon and Steven W. Kling, also principal with Colliers, represented the private seller of 2900 Golf. This same Colliers team alone has sold a total of seven similar office properties in the past 24 months totaling 385,000 square feet. These transactions include Schaumburg properties such as 55 E. Commerce Dr., 1651 Wilkening Rd., and 1000 E. Woodfield Rd.

The buildings that have traded hands lately are neither vacant nor obsolete, says Simon, so the overall impact on net absorption should be small. But it does show that businesses throughout the northwest submarket now feel comfortable enough to expand.

Gallagher paid $3.9 million for its new property, or about $81.25 per square foot. By contrast, GlenStar Properties and Walton Capital paid just $58 million in 2013 for Continental Towers, a 911,341 square foot complex a short distance away, or about $64.19 per square foot.

Gallagher was represented by Pat Caruso and Mike Caruso of LJ Sheridan & Co.