BRONZEVILLE, ILL. — EXP Realty Advisors, Inc. has arranged a $34 million sale of a building occupied by grocer Mariano’s in Bronzeville. The 74,000-square-foot building is located at 3857 S. Martin Luther King Drive, five miles south of Chicago. The building is triple net leased to Mariano’s, a division of Kroger. The buyer was a New York City-based real estate investor seeking a high-quality, well-positioned asset. Andrew Greenberg of EXP Realty Advisors represented the buyer.
Mixed-use projects are booming, and for good reason: the city as we know it is fundamentally changing. Millennials are flocking away from the suburbs and into the city center, driving development in walkable urban cores that incorporate everything consumers need to live, work and play. In Chicago, a dramatic increase in mixed-use development since the last recession has completely recast the way we think about how retail concepts fit into our unique urban landscape. Mixed-use buildings anchored by residential projects are well supported by the city’s political class because they increase density in a city that’s already bursting at the seams. Changes in the way the City of Chicago approaches zoning has led to an uptick in transit-oriented development, which allows for lower parking requirements in projects centered around mass transit hubs. The city’s transit-oriented development (TOD) ordinance, which was approved in 2013 and revised in 2015, has been the driver behind the massive influx of new mixed-use projects over the last four years. Mixed-use advantages From a purely economic standpoint, mixed-use projects boast a diverse tenant roster, which typically means less risk for investors. Land prices in Chicago have reached a point where in some cases standalone retail is …
The retail marketplace continues to undergo a period of retrenchment and reinvention, the likes of which we have not seen since the rise of the suburbs starting in the late 1950s. The new period of disruption has been fueled by the rise of e-commerce, in particular Amazon, with the emergence of smartphones and tablets acting as a major accelerator since 2010. Combined with a consumer base that downshifted into frugality mode during the Great Recession, the current marketplace is one of the most challenging retail landscapes of the past 50 years. In spite of these challenges, overall shopping center vacancy has actually continued to trend downward. Despite a significant increase in retail closures (through the third quarter Cushman & Wakefield has tracked over 4,000 major chain closures for 2016, surpassing 2010’s record of 3,600), as well as multiple notable bankruptcies, the disruption has not equally impacted all retail sectors. Digital media has effectively wiped out the video and record store sectors while creating major challenges for the remaining major bookstore chains. The consumer electronics and office supplies categories continue to face major headwinds from e-commerce, as do a number of other retail categories ranging from gifts to home furnishings. The …
NEW YORK CITY — The North Face has opened its first-ever flagship store in New York City. Located at 510 Fifth Ave., the 20,000-square-foot store offers an immersive brand experience for customers by bringing the beauty of outdoor exploration inside while inspiring customers to push their limits outside. The new store features a climbing wall; custom product available only at the Fifth Avenue location, including a limited edition Original Daypack collection, a collaboration with New Era; and on-site product customization featuring vintage and new collectible patches in partnership with Lot, Stock and Barrel. Additionally, the store has specialist associates on hand to assist customers with choosing technical apparel. This year marks the 50th anniversary of The North Face, which was founded in 1966.
CHARLESTON, S.C. — Baltimore-based Continental Realty Corp. has purchased West Ashley Shoppes, a 136,242-square-foot shopping center located at 946 Orleans Road in Charleston. Continental Realty bought the asset through its Continental Realty Fund IV LP fund from T West Ashley SC LLC for $17.3 million. Built in 1987 and renovated in 2003, West Ashley Shoppes was 93 percent leased at the time of sale to tenants such as Bed Bath & Beyond, Cost Plus World Market, Ross Dress for Less and Party City. Kyle Stonis and Pierce Mayson of SRS Real Estate Partners represented the seller in the transaction.
SCHAUMBURG, ILL. — Ryan Companies US, Inc. is converting a former Dominick’s grocery store into an Art Van Furniture store in Schaumburg, a northwest suburb of Chicago. Dominick’s closed its operations in the Chicago area in 2013. The facility has been vacant since then. Ryan is undertaking a comprehensive renovation and modernization of the 72,000-square-foot facility, located at 1293 E. Higgins Road. The new Art Van Furniture store, the tenth in metro Chicago, will open later this fall.
BIG RAPIDS, MICH. — NAI Wisinski of West Michigan has brokered the sale of Sattler Square, a 95,000-square-foot shopping center in Big Rapids, to a Cincinnati-based buyer. Sattler Square is located at 754 Perry Ave., between U.S. 131 and the campus of Ferris State University. The center, which is currently 96 percent occupied, is anchored by Tractor Supply and Big Lots and includes well-known brands such as Maurice’s, GNC, rue21 and H&R Block. NAI brokers Russ Bono and Cameron Timmer represented both the seller and buyer in the transaction.
BURBANK, CALIF. — Paragon Commercial Group has acquired the leasehold and fee interests in Airport Plaza, a 135,039-square-foot shopping center located in Burbank, for $37 million. Tenants at the center include Hobby Lobby, Toys ‘R’ Us, O’Reilly Auto Parts and Burger King. Bill Bauman and Kyle Miller of Savills Studley represented the sellers, Airport Plaza Inc. and Alton Jennings Trust, in the transaction. Savills Studley also represented the buyer, which plans to redevelop and reposition the shopping center.
BROOMFIELD, COLO. — CraftWorks Restaurants & Breweries Inc., an operator of brewery restaurant chains, has acquired seven existing Old Chicago Pizza & Taproom locations from longtime franchise partner OCI Enterprises Inc. The locations will remain open for business. In 2015, Old Chicago launched its new restaurant prototype — a 5,000-square-foot build with an additional 1,000 to 1,200 square feet of outdoor patio space, a new kitchen and upgraded bar technology. CraftWorks Restaurants & Breweries Inc. features nearly 200 franchised and company-owned restaurants primarily operating under the Old Chicago Pizza & Taproom, Gordon Biersch Brewery Restaurants, Rock Bottom Restaurants & Breweries and ChopHouse & Brewery brands.
LOS ANGELES — SG Blocks and Alvarado Restaurant Group will move a former popup Taco Bell location to its permanent location in the South Gate submarket of Los Angeles. The five-module, 1,080-square-foot restaurant was previously used at the 2016 South by Southwest (SXSW) Conference & Festivals in Austin, Texas. Alvarado Restaurant Group, part of Alvarado Cos., is the franchise owner for the Taco Bell in South Gate. SG Blocks partnered with Alvarado Construction Inc. to install the Taco Bell at its new, permanent location. The companies are currently completing all final utility work, paving and landscaping. Alvarado Cos. currently owns 110 other Taco Bells in Colorado, New Mexico, Texas, Wisconsin and California. The Taco Bell will be open at its permanent home in South Gate by the end of 2016.