Is suburban retail dead? The short answer is “of course not.” While the recession was especially hard on many suburbs, recent activity indicates that conditions have improved greatly. To better understand where we are, we need to examine where we have been. During the real estate boom leading up to 2007-08, retail developments were sprouting up everywhere. Many developers expanded farther and farther away from Chicago, while incurring an additional risk through overleverage and speculative projects. The economy started to crash about the same time that many real estate projects came to market. Developers and landlords quickly discovered that there was a lack of consumer demand necessary to drive retailers to lease space in the newest suburban centers. Many retailers were attracted to the suburbs due to high household income levels. However, population density was often overlooked. Even the most affluent suburbs experienced difficulties as too many retailers were chasing a limited amount of customers. Tale of Two Markets As the economy and overall real estate market started to recover, many retailers focused their energies on opening stores in Chicago’s core metro areas. Neighborhoods such as the West Loop, Streeterville, River North and Wicker Park were on fire. For many …
Midwest
TOPEKA, KAN. — McCarthy Building Cos. Inc. has completed construction on a new 500,000-square-foot plant for Mars Chocolate North America in Topeka. The new facility will produce Snickers chocolate bars and M&M’s chocolate candies. The $270 million project includes $195 million in construction costs. McCarthy built the project in conjunction with MC Industrial Inc. Construction of the plant, located in the Kanza Fire Commerce Park on U.S. Highway 75 began in September 2011. The plant is the first new Mars Chocolate North America site in the country during the last 35 years and is McCarthy’s first completion of a Kansas project since 1991.
CINCINNATI — Kroger Co. has purchased more than 12 acres of land at Oakley Station in Cincinnati for an undisclosed price for the construction of a 145,568-square-foot Kroger Marketplace. The store, which will be the second largest Marketplace in the Kroger chain, is set to open in the first quarter of 2015. Developed by Vandercar Holdings, the Kroger Marketplace will be the third phase of the Center of Cincinnati, which includes existing retailers such as Target, Sam’s Club and Meijer. Oakley Station is a 74-acre, mixed-use development located along the I-71 corridor in Cincinnati. Co-tenants at Oakley Station include Cinemark Theater and The Boulevard at Oakley Station, a 300-plus unit residential development. Edge Real Estate Group represented Oakley Station in the sale. Additional retail and restaurant space, and up to 400,000 square feet of class A office space will complete the development.
MINNEAPOLIS — NorthMarq Capital has arranged $34.5 million in refinancing for 7west Apartments in Minneapolis. The property, which consists of 218 units, is located at 1800 Washington Ave. S. The loan is structured on a 15-year term and 30-year amortization following two years of interest only. Dan Trebil of NorthMarq arranged financing for the borrower through a relationship with a correspondent life company.
CHICAGO — Sperry Van Ness has arranged the sale of Walton on the Park, a rental condominium tower, and a 17,180-square-foot development site adjacent to the property. Miami-based developer, Crescent Heights Inc. acquired the property located at 2 W. Delaware St. in Chicago. The sale included 160 units of the 201-unit high rise and the neighboring parcel. Jerry Goldner of Sperry Van Ness represented the buyer in the transaction.
TROY, MICH. — Colliers International has arranged the sale of a 32,375-square-foot industrial space in Troy approximately 20 miles north of Detroit. The building is located at 1783-1801 Thunderbird Drive. Peter E. Kepic, Peter J. Kepic and Ryan Brittain of Colliers represented the seller, Reliable Holding Co. Inc., in the transaction. Raffi Derbabian of Colliers represented the undisclosed buyer.
MOKENA, ILL. — Inland Real Estate Corp. has acquired Mokena Marketplace, a 49,000-square-foot shopping center in Mokena, for $13.7 million. The acquisition of Mokena Marketplace, located approximately 30 miles southwest of Chicago, includes retail space that is 76 percent leased to PetSmart, Party City, Sally Beauty Supply, and Lee Nails; a freestanding Chase Bank on a ground lease; and five developable out parcels. The shopping center is shadow-anchored by JC Penney and a new Meijer grocery store, which is scheduled to open this summer.
TAYLOR, MICH. — Friedman Integrated Real Estate Solutions has arranged the lease of an 8,484-square-foot retail space in Taylor. The landlord, Sebanc Taymich Investments LLC, leased the space, located at 7705 Telegraph Road, to Ohio-based Phantom of Michigan Inc., a fireworks retailer. Greg Hornby of Friedman represented the landlord in the transaction. Phantom of Michigan, also known as Phantom Fireworks, is based in Youngstown, Ohio. The company has seven locations in Michigan and more than 1,200 locations throughout the country.
DETROIT, MICH. — NAI Farbman has arranged a 3,205-square-foot office lease for The Public Lighting Authority of Detroit at Cadillac Tower. Located at 65 Cadillac Square, Cadillac Tower is a 40-story, 350,000-square-foot Class B office building. The tower is in Detroit’s central business district. Paul DeBono of NAI Farbman represented the landlord, Cadillac Tower MI LLC, and the tenant.
JACKSON, MICH. — Colliers International Detroit has arranged a 5,400-square-foot retail lease for Once Upon a Child, a children’s resale franchise, in Jackson. The space is in Wisner Plaza, located at 1000 N. Wisner St. Kent Butler of Colliers represented the tenant. Max Goldman and Matthew Seeley of Colliers represented the landlord, Wedge Investments Inc., in the lease transaction. Retailer Once Upon a Child buys and sells gently used clothing and baby supplies.