The Jaffe Cos. Lands $40M Refi for Chicago Retail Asset

JLL Capital Markets arranged the financing.

Chicago grocery-anchored retail center

Edens Collection. Image courtesy of JLL Capital Markets

The Jaffe Cos. has obtained a $40 million five-year, floating-rate loan for the refinancing of Edens Collection, a 142,740-square-foot, grocery-anchored retail center in Chicago. JLL Capital Markets arranged the financing on behalf of the borrower through Pacific Life Insurance Co.

Anchored by a Target supermarket, the urban infill shopping center completed in 2020 is currently 94 percent leased. Tenants at the property include Ross, Starbucks, LA Fitness, Five Below and Eyecare Services Partners, among others.

Located at 4601-4715 W. Foster Ave., Edens Collection is adjacent to the Foster Avenue exit and benefits from high visibility due to its proximity to major thoroughfares, including Interstate 94, Cicero Avenue and Elston Avenue. The retail center sits in a trade area where the daily traffic exposure reaches 214,900 vehicles. Downtown Chicago is some 10 miles southeast of the property.

According to CBRE’s website, Edens Collection is an ideal location for national, regional and local retailers, service providers and restaurants, being designed for easy pedestrian access. The same source notes that the retail center also features 500 parking spaces.

Senior Managing Director Keith Largay and Managing Director Christopher Knight of JLL represented The Jaffe Cos. in the refinancing deal.

Shifting consumer behavior

As of the end of 2022, retail investment activity was concentrated in key markets such as New York City, Los Angeles and Chicago, according to an end-of-year market report conducted by Matthews. The same source reports that last year, 47.3 million square feet of retail space was delivered and slightly over 250 million square feet of retail space was leased.

According to Matthews, certain segments of the retail sector including grocery stores, discount stores, restaurants, big-box retailers and strip centers, are expected to perform well in the future. However, as inflation increases, commercial real estate players are reevaluating their investment strategies in the market.

As changes in consumer behavior, economic instability and supply chain issues continue to pose challenges for the industry, retailers are currently investing in ways to ensure they can meet customer demand both online and through in-store experiences.

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