A joint venture of Brand Street Properties and AEW Capital Management dropped $125M on a 410K SF suburban shopping center, continuing a run of major deals in the asset class.
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The JV announced the acquisition of Deer Park Town Center in a release Thursday. The sale set the mark for the highest retail deal in the Chicago area in a decade, snatching the record from another shopping center that traded earlier in September.
The pair acquired the property at 20530 N. Rand Road from PGIM Real Estate.
The property is about 85% leased to a roster of tenants including Apple, Crate & Barrel, Gap and Lululemon, according to a news release. Brand Street manages operations and leasing for the center and plans to rework public gathering spaces to drive traffic.
“The asset has established itself as the dominant, open-air shopping destination in the region, and we look forward to building upon that success long-term," Brand Street Properties Senior Vice President of Acquisitions Jordan Brandes said in a statement.
The deal is the latest in a string of Chicago suburban retail center sales, the third such transaction of $95M or more to close this month.
Earlier this week, Las Vegas-based Rhino Investments Group picked up the 932K SF Randhurst Village in Mount Prospect for $95M. The shopping center draws more than 7.3 million annual visitors.
At the beginning of September, Fairbourne Properties paid $122M for Village Crossing, a 722K SF retail center in Skokie. Until the Deer Park deal less than a month later, the sale was the largest retail deal in the Chicago area since 2016.
Newmark's Conor Lalor, Kyle Minter and Keely Polczynski represented PGIM in the Deer Park deal, with support from the brokerage's James Sharpe V and Brian Schneiderman.
"The property's exceptional demographics, premier merchandising profile and embedded value-creation opportunities generated significant interest from investors seeking high-quality retail real estate," Lalor said in a statement.
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