Allstate Reaches Agreement to Sell Northbrook Campus

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) has agreed to sell the majority of its Northbrook, Illinois campus to Dermody Properties for approximately $232 million, with an expected closing in 2022. This decision responds to a shift towards remote work among employees. The sale aims to reduce real estate expenses and supports Allstate’s Transformative Growth initiative, which focuses on increasing personal property-liability market share. The Northbrook campus, established in 1967, includes 2 million square feet of office space.

Positive

• The sale of the Northbrook campus is projected to reduce real estate expenses significantly.
• The transaction supports Allstate's Transformative Growth initiative aimed at increasing market share.
• Retaining a significant presence in the Chicago area, ensuring continued operations.

Negative

• None.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced it has reached an agreement to sell the property making up the majority of its campus in Northbrook, Illinois, to Dermody Properties for approximately $232 million. The sale is expected to close in 2022.

Allstate is selling the property as employees have more choice about where they work and many are choosing to work from home. The company plans to keep a significant presence in the Chicago area, including its existing office space in downtown Chicago.

The sale will also reduce real estate expenses and further advance Allstate’s multi-year Transformative Growth initiative to increase personal property-liability market share by building a low-cost insurer with broad distribution.

Allstate moved into the Northbrook site in 1967 and the campus currently includes 2 million square feet of office space. The buildings and land are located at 2675, 2700, 2755, 2775, and 3075 Sanders Road, Northbrook, Illinois.

About Allstate

The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with a circle of protection including cars, homes, electronic devices, benefits and identity theft. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online and at the workplace. Allstate is widely known for the slogan “You’re in Good Hands with Allstate.”

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211129005482/en/

Al Scott

Media Relations

(847) 402-5600



Mark Nogal

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

What is the purpose of Allstate's campus sale in Northbrook?

Allstate is selling its Northbrook campus to adapt to remote work trends and reduce real estate expenses.

How much is the Allstate campus sale worth?

The sale of the Northbrook campus is valued at approximately $232 million.

When is the Allstate campus sale expected to close?

The sale is expected to close in 2022.

Who is buying Allstate's Northbrook campus?

Dermody Properties is the buyer of Allstate's Northbrook campus.

What strategic initiative is supported by the sale of the Northbrook campus?

The sale supports Allstate's Transformative Growth initiative to increase personal property-liability market share.