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Baxter Spinoff Leases Bulk of Chicago-Area Office Campus

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Vantive’s lease in Deerfield, Ill., comes just in time for the property’s owner. The post Baxter Spinoff Leases Bulk of Chicago-Area Office Campus appeared first on Commercial Property Executive.

Corporate 500 office campus in Deerfield, Ill. Photo courtesy of CommercialEdge — Vantive will lease nearly 700,000 square feet at the Corporate 500 campus in Deerfield, Ill.

Vantive, a spinoff of Baxter International that focuses on kidney care, has leased nearly 670,000 square feet of space at the Corporate 500 office campus in Deerfield, Ill., as its new headquarters, The Real Deal reported.

Vantive reportedly plans to plow $23 million into the Class A four-building campus on Lake-Cook Road, according to an announcement last Friday by Illinois Gov. JB Pritzker’s office. A 10-year state income tax credit agreement is contingent on Vantive retaining its current 219 employees and adding 50 more full-time positions at the company’s new HQ.

Corporate 500’s owner is New York City-based Opal Holdings, and the campus was completed in the 1980s, according to information provided by CommercialEdge.

Vantive was acquired by funds managed by the Carlyle Group for $3.8 billion in February after having been spun off by Baxter International.

The Corporate 500 campus was previously home to Caterpillar, but lost that long-time tenant in 2022, helping trigger the foreclosure process the property has been embroiled in since 2023. Opal Holdings was sued by lender Unify Financial Credit Union for nonpayment of property taxes and loan payments, The Real Deal reported.

Widespread woes

Last October, Commercial Property Executive reported that Pinnacle Bank Texas sold Burnett Plaza, a 1.1 million-square-foot, 40-story Class A office tower in Fort Worth, Texas. Pinnacle had acquired the building for $12.3 million in a foreclosure auction the previous May. The auction was triggered by Opal Holdings, the previous owner of Burnett Plaza, having defaulted on a $13 million loan.

The suburban Chicago office market is showing the bifurcation typical of many markets nationwide, with modest positive net absorption in Class A space, more than offset by losses in Class B and C properties, according to a report from JLL.

Interestingly, JLL reports that the first quarter’s largest lease came when Fortune Brands announced their 360,000-square-foot headquarters relocation from Corporate 500 to the former Horizon Therapeutics campus in Deerfield.

The post Baxter Spinoff Leases Bulk of Chicago-Area Office Campus appeared first on Commercial Property Executive.