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Reconstruction begins on latest phase of Bell Works Chicagoland, the former AT&T campus in Hoffman Estates
Reconstruction begins on latest phase of Bell Works Chicagoland, the former AT&T campus in Hoffman Estates

Chicago Tribune

time8 hours ago

  • Business
  • Chicago Tribune

Reconstruction begins on latest phase of Bell Works Chicagoland, the former AT&T campus in Hoffman Estates

The developer of Bell Works Chicagoland, the former AT&T campus in Hoffman Estates, broke ground Monday on the project's next phase. The New Jersey-based Inspired by Somerset Development plans to remake the vacant west side of the 1.2-million-square-foot building, creating new offices and a 'Main Street' lined with storefronts. retail, restaurants and public gathering spaces. It's part of the company's vision to transform the campus at 2000 Center Drive from a sterile corporate environment into a 'Metroburb,' a community hub for tenants and residents of the northwest suburb. 'It's a small downtown in a great suburban location,' said Somerset CEO Ralph Zucker. 'It took time, but we've hit our stride.' The company bought the campus in 2019 for $21 million, a fraction of its value in 2005, when it was sold as part of a two-property portfolio for $338 million, according to Costar. The revived complex welcomed its first tenant in 2020. The east side is now more than 90% leased, and includes revamped offices, pedestrian walkways, cafes and co-working areas. The latest tenants include Arjo, a medical devices provider that will relocate its U.S. headquarters to Bell Works Chicagoland in 2025, and Swing Loose, an indoor golf simulator. The low vacancy makes Bell Works Chicagoland a standout in the northwest suburbs. The market was hit especially hard by the pandemic and the loss of many obsolete corporate campuses. Its vacancy rate stood at more than 32% in the first quarter of 2025, the highest in the suburbs, according to Colliers, a commercial real estate firm. Somerset will complete the latest renovation in 12 to 18 months, opening up about another 500,000 square feet. Zucker said that because prospective tenants can now walk through and see the vibrant east side, he expects leasing the western portion will go quicker. 'The suburban office tenant has spoken up, and what they've said is, we want to be in inspired spaces,' Zucker said. 'There is a return to office, but it has to be the right kind of office.' Wight & Co. is the architect and npz studio+ will design the interiors. 'Preserving the architectural integrity of this historic building is central to our design approach,' said Matthew Duggan, vice president of Wight & Co. 'We've developed a vision that respects the campus' original character, while opening it up to light and creating spaces that are inviting and functional for the community.' AT&T left the campus in 2016. Village officials initially discussed turning it into a public university or a retail mall, but went with Zucker's vision after seeing how, starting in 2013, Somerset transformed the former Bell Labs complex in Holmdel, New Jersey, into a 2-million-square-foot, mixed-use complex. 'What this latest groundbreaking demonstrates is the success Bell Works has had in leasing their space out,' said Eric Palm, village manager of Hoffman Estates. 'It's a unique property, and everything they had set out to do, they've done or are planning to do.' The developer broke ground earlier this year on 164 town homes on a 20-acre residential portion of the property. It also plans to also launch a 300-unit multifamily building, eventually turning Bell Works Chicagoland into a 24/7 community. 'When you have an ecosystem, all the different parts have to work in concert,' Zucker said.

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