DIR Development Acquires Old Orchard Towers Skokie Office Complex From Zeller For $8M

The Old Orchard Towers, located at 5202 & 5250 Old Orchard Road in Skokie, was acquired by a development team led by DIR Development for just under $8 million. This office asset spans 355,000 square feet with a price per square foot of $23. Previously owned by Zeller, the property is set for transformation into a mixed-use residential complex comprising 245 apartments and a parking garage. The sale represents an 88% discount from its last transaction in 2007 when Zeller purchased it for $64 million. The purchase decision reflects the challenges faced by the Chicagoland office sector amidst remote-work trends and rising interest rates, despite approval from Skokie's board of trustees for the redevelopment plan.

Summary of transaction details:

• Property Type: Office
• Transaction Amount: $8,000,000
• Buyer: Tony Ruh - DIR Development
• Seller: Bob Six - Zeller
• Market: Skokie

Tony Ruh from DIR Development took the lead in acquiring the Old Orchard Towers, while Bob Six from Zeller was the seller. The decision to convert the office asset into residential space signifies a shift in the property's utility to adapt to changing market demands. The substantial price difference from the previous sale in 2007 points to the evolution of the real estate landscape in response to shifting economic conditions and urban development trends.