Chicago-based Fairbourne Properties picked up a major retail center in the city's suburbs from Nuveen for $122M, one of the largest retail sales in the area in several years.
Fairbourne acquired the 722K SF shopping center in Skokie in a deal that closed Aug. 28, according to property records. The sale price is reportedly the highest amount for a retail property in the Chicago area since the retail portion of the Sullivan Center in the Loop sold for $147M in 2016, according to Crain's Chicago Business.
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The shopping center at 5507 W. Touhy Ave. in Skokie features 69 retailers, with key tenants including AMC Theatres, Dick's Sporting Goods, Best Buy, Altitude Trampoline Park and Michael's, according to Fairbourne's website. An archived listing from Nuveen marketed the property as having outdoor patios and surface parking and as just 15 miles from the Chicago central business district.
Fairbourne did not immediately respond to a request for comment.
The company was established in 2016 and is headquartered on Michigan Avenue. It has a portfolio of 18 properties, including Oak Lawn Commons in Oak Lawn, Louis Joliet Pointe in Joliet and Parkway Plaza in Bloomington.
Bill Stewart, senior vice president with Draper and Kramer's commercial finance group, which originated the loan on the property, said in a statement that retail continues to enjoy strong demand among investors and lenders.
"We saw strong competition among lenders to finance the acquisition, even given the size of the loan," Stewart said.
Retail transaction velocity in the Chicago metro area increased about 30% in the year ending in June, according to a recent Marcus & Millichap retail report. Chicago’s average price per square foot remained around the mid-$330s, while cap rates held in the upper 7% band, according to the brokerage.
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