State Farm has announced it has finalized the sale of its former headquarters in downtown Bloomington to a Rockford-based developer that plans to build upscale apartments at the site.
Urban Equity Properties announced in September it signed a purchase agreement with the insurer to take over the 13-story, 200,000-square-foot building that may have staved off demolition for the historic building.
State Farm officials said in a news release the sale formally closed Thursday. The sale price hasn’t been disclosed. UEP previously set the price tag for the redevelopment at $40 million.
“Urban Equity Properties is excited about this project and the opportunity to be part of the great things happening in downtown Bloomington,” UEP founding principal Justin Fern said in a news release. “We knew the redevelopment would be a wonderful fit for us. When it looked like we could save the property, we contacted State Farm directly and they have been terrific to work with.”
The developer plans to convert the building into “Bloomington Lofts” featuring more than 200 luxury loft apartments with a fitness center, ground floor cafe and other amenities.
UEP officials have indicated they would likely seek some local, state and federal financial incentives for the project. Bloomington City Manager Tim Gleason said the city has engaged in informal talks with the company.
“No formal ask (from UEP) at all,” Gleason said. “I think the real estate transaction is what should come first and we will wait and see what Urban (Equity) Properties wants to do next.
“We definitely want to work with them and know that 200-plus more apartments downtown and those being occupied, that’s huge.”
UEP officials haven’t released a timeline for when the project could start.
State Farm moved employees out of the building in early 2018 and has since removed items of historical significance. Company officials announced in July the building would be targeted for demolition after a planned sale fell through. That prompted a group of downtown stakeholders calling itself Save Our State Farm Building to push for alternative solutions until a buyer emerged.
The building had served as State Farm’s headquarters until 1974 and had housed close to 500 employees.
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