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BOLINGBROOK, IL-BPG Properties Ltd. has redeveloped the 548,000-square-foot former Tellabs Inc. campus into a multi-tenant office complex known as Tallgrass Corporate Center. The private equity real estate fund manager’s $13-million conversion of the property included renovating 128,000 square feet of manufacturing and warehouse space into office.

The other 420,000 square feet in the development was existing office space which saw renovations to the corridors, lobby areas and main entrance; additions of a conference room, cafeteria and fitness center; and 300-space expansion of the parking lot.

“Tallgrass is in a predominantly industrial area and we’ve really created a new office market there,” Brian Dovalovsky, asset manager for BPG, tells GlobeSt.com. “Although it’s not the typical office market, this is a great location for tenants able to use the infrastructure we already have in place. The big draw for tenants is that they can have the feel and benefits of a big corporate campus with all the amenities without having to construct their own property.”

The Tallgrass Corporate Center currently houses a single office building at 1000 Remington Blvd. which ranges between two and three stories. The facility was built in two phases between 1993 and 1998. BPG bought the property from Tellabs in 2004 for $14.3 million, sources say.

“We purchased Tallgrass because it had a lot of infrastructure in place, with power and data center capabilities,” Dovalovsky says. “BPG has a strong track record of taking single tenant corporate headquarters and adapting the space to multi-tenant use. BPG is well-positioned because we have the capital in place, and a lot of other owners in the industry can’t do that right now.”

The development is 85% occupied with tenants including Provena Health in 104,000 square feet, Ulta Beauty in 82,000 square feet, Quebecor World Logistics in 71,000 square feet, Adventist Midwest Health in 70,000 square feet, and Patterson Medical in 44,000 square feet. Most recently, Chicago Bridge & Iron Company became the first tenant to sign on for the newly converted office space, leasing 73,000 square feet. About 55,000 square feet remains available for lease in the former manufacturing area where renovations were completed earlier this year, bringing 12-foot ceilings, skylights, and a private entrance. Roughly 22,500 square feet remains available in the portion of existing office.

The 50-acre property can support another building, and BPG is currently seeking a company interested in a build-to-suit as large as 100,000-square-feet. Dovalovsky says the success of Tallgrass Corporate Center may do much to encourage future development of office in this historically industrial area. “We’ve created a new market, and there are rumors that other owners are looking at putting in additional office in the Bolingbrook area, since there is a track record now of business being drawn to that area,” he says.

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