Allstate selling Northbrook-area HQ with buildings underutilized as many work from home
Allstate Corp. plans to sell its headquarters near Northbrook and already has a buyer, Northbrook's village president confirmed Friday.
Bloomberg and others had reported the sale, citing an emailed statement from the company.
The insurance giant plans to sell its offices because many employees are choosing to work remotely, according to the statement Friday. The complex in the suburbs has several buildings that total 1.9 million square feet on a 186 acres, Bloomberg reports, citing Allstate's regulatory filings.
"Allstate's employees have more choice about where they work and many are choosing to work from home," said Tammy Kotula, a spokeswoman for Allstate. "As a result, we will sell our office in Northbrook but plan to keep a significant presence in the Chicago area."
Allstate does have office space in Chicago, notably in the Merchandise Mart.
Northbrook Village President Kathryn Ciesla said she heard from Allstate that it already has a buyer.
"So they're close to inking a deal," she said.
She said she spoke with Allstate Friday and "I understand that they weren't even utilizing all of the facilities."
Ciesla pointed out that the property is actually in unincorporated Cook County, although it has a Northbrook address.
"It really was on the edge there and surrounded by Glenview, so I don't imagine it will have much impact (on Northbrook)," she said.
However, future impact would be determined by the nature of the use, whether it is office or residential. "It's not a revenue source for us," she said.
The news comes after Allstate said Oct. 1 that it had closed the sale of Allstate Life Insurance Co. of New York to buyer Wilton Re for approximately $400 million.
In a separate transaction announced earlier this year, Allstate agreed to sell Allstate Life Insurance Co. to Everlake US Holdings Co., an entity managed by Blackstone Group. That transaction is expected to close this year.
The transactions complete Allstate's exit from the traditional life and annuity businesses as the company focuses on insurance and continues to offer "a full suite of life insurance and retirement solutions from third-party providers," it said.
In June, Allstate said it agreed to acquire insurance carrier SafeAuto.