SOUTH BARRINGTON, ILL. — Following financing difficulties, Chicago-based Jaffe Cos. has remained in control of The Arboretum at South Barrington, a luxury lifestyle center located at the intersection of Higgins Road and Route 59 in the western Chicago suburb of South Barrington. Jaffe has partnered with Boston-based Fidelity Real Estate in the ownership of the property and has closed on the joint venture acquisition.
Jaffe developed the company with investment partner RREEF Alternative Investments in 2008. The 427,000-square-foot center achieved 85 percent occupancy but was unable to meet its target rents in the face of the recession. Its tenant roster include LL Bean (the company's first retail location outside of the Northeast), Pinstripes, Ruth's Chris Steakhouse, Chico's, Victoria's Secret, Tom-Price and approximately 50 other retailers and restaurants.
In 2010, the project's original financing matured and Jaffe was unable to work out an extension with the lender or with RREEF. This recent transaction begins a new chapter in the developer's ownership of the center.
“We are very excited to remain in control and be able to realize our vision for this great center,” said Mike Jaffe, company president, in a statement. “This is a tremendous success story for our tenants, our region, our financial partners and ourselves.”
— Coleman Wood