Out-of-State Investors Target Midway-Area Properties
There’s been a lot of focus on the O’Hare market and the industrial, hotel and office properties that benefit from being in the airport’s orbit, but Midway’s neighborhood also seems to be making a comeback. Blackstone just sold the Marriott Chicago Southwest in Burr Ridge to Kentucky-based Schulte Hospitality Group for more than $25M, Crain’s Chicago Business reports, after buying it up with Texas-based Aimbridge Hospitality as part of a 2012 distressed portfolio deal. It remains a value-add play, with modestly rising RevPAR that could benefit from a capital infusion and renovations.
In Evergreen Park, Michigan-based Lormax Stern plans (pending the foreclosure process) to buy the near-empty 734k SF Plaza Mall for around $14M (less than the mall’s $18.4M defaulted loan), Crain’s reports. The “death of malls” has been widely publicized, but with the right re-tenanting and redevelopment strategy, sluggish suburban sites could be the yield plays everyone’s been searching for.