By Gabriel Circiog, Associate Editor
The Streets of Woodfield, a 713,000-square-foot outdoor mall located in Schaumburg, is being sold by Kimco Realty Corp., ChicagoRealEstateDaily.com reports. Arrow Retail, a Dallas investment firm, has agreed to buy the property located at 601 N. Martingale Rd.
Although the agreed price is not yet known, another investor had signed a contract to pay $120 million for the mall in 2010—although this deal fell through in the end. If in that price range, the transaction would become one of the biggest Chicago-area shopping center sales since early 2011.
The shopping center is currently 98 percent occupied, with tenants including an AMC Theatre, a Whole Foods Market and a Dick’s Sporting Goods. One of the advantages of the property is its close proximity to Woodfield Mall, an important shopping destination spread over 2.2 million square feet. Its positioning at the intersection of Interstate 290 and Higgins Road also offers high visibility.
Although everyone can agree that the prime location of the property is very attractive to investors, it is not necessarily guaranteed to offer success. The main issue is the Dick’s Sporting Goods store, which currently occupies 180,000 square feet—almost a quarter of the property. Bearing in mind that its stores are generally about 50,000 square feet in size, a resizing is expected by most experts.
Robert J. Bond, co-founder and president of Bond Cos., said the new landlord has to be ready for the moment when Dick’s decides to bring the store down to a more manageable size, leaving a hole behind that will need to be filled.
Kimco hired Holliday Fenoglio Fowler LP to sell the property in September after it took control of the mall in 2011, this following a three-way legal dispute in 2010 between Freed, Kimco and lender Bank of America.
Bank of America agreed to extend the due date for an $82.5 million loan on the property, which was initially planned to mature last August. The new due date passed on Feb. 29, 2012.
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