Andrew Sells HQ

Andrew Corp. reaches agreement to sell its Orland Park property and relocate to Chicago suburbs

August 30, 2005

3 Min Read

ORLAND PARK, Ill. -- Andrew Corporation has reached agreement to sell its Orland Park property and will relocate its global corporate headquarters and manufacturing operations to separate suburban Chicago locations that will provide improved operational effectiveness and state-of-the-art facilities.

In separate transactions, Andrew has:

  • Signed a contract to sell its 104-acre property at 10500 W. 153rd Street in Orland Park to developer Kimball Hill Homes for $28.5 million. The sale, contingent on completion of due diligence and other factors, is expected to close in two phases over the next 18 months.

  • Leased 45,000 square feet in the Westbrook Corporate Center, 22nd Street and Wolf Road, Westchester, for its new global corporate headquarters. The move will involve approximately 150 employees and be completed by early 2006.

  • Agreed to a competitive State of Illinois incentive package that includes tax credits and training funds, with total potential value of up to $8.3 million over 10 years, in return for choosing Illinois locations and meeting certain employment level commitments.

In addition, Andrew is finalizing negotiations for 50 acres of property in the southwest suburbs on which it will lease a newly-constructed building of approximately 550,000 square feet for its cable products manufacturing operations and certain staff functions. The company is deciding between three sites within 10 miles of its current Orland Park location and, depending on local tax issues, expects to choose a site within the next two months. The building will house approximately 800 employees, with relocation expected in 2007.

"Andrew will continue calling the Chicago area its home and build upon the tradition we've established during the past 68 years in the Chicagoland area," said Ralph Faison, president and chief executive officer, Andrew Corporation. "The dramatic growth of the residential and retail areas around us has created a unique development opportunity within Orland Park and thus a high level of interest in our property. The value of this property enables us to fund the move to a new company headquarters and world-class manufacturing facility."

Andrew expects to record a one-time gain, before costs and relocation expenses, of more than $20 million from the sale of its Orland Park property. Approximately 50 percent of the expected gain will be recorded at the time of the first real estate closing for the land south of 153rd Street, expected in mid-2006, and the remainder at the close for the property north of 153rd Street, expected by early 2007. Costs and relocation expenses are expected to range from $10 million to $12 million and will be incurred over the 18 month period.

"Andrew Corporation is another Illinois company that has achieved great success in the global marketplace," said Illinois Gov. Rod R. Blagojevich. "Backing innovative, talented companies like these with the right combination of resources and hands-on support is the key to ensuring that Illinois remains a world-class place to do business. When we invest in companies that invest in Illinois, we fuel their growth and competitiveness and create more good jobs for working families across the state."

Andrew Corp.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like