The majority of the Golf Mill Shopping Center property in Niles has been sold to Palm Beach, Florida-based Sterling Organization for $60 million, the company announced Wednesday.
The private equity real estate investment firm will acquire 912,382 square feet of the 1.1 million-square-foot shopping center. The property was purchased through the firm's institutional fund Sterling Value Add Partners, LP, for $60 million from the family that originally developed the shopping center over 50 years ago.
Golf Mill, which sits on approximately 80 acres of land on the south side of Golf Road between Milwaukee and Greenwood avenues, is a partially-enclosed mall anchored by Target, Kohl's, AMC Theaters, Ross Dress for Less, J.C. Penney, Sears, XSport Fitness, Shop-N-Save, GFS Marketplace and Value City Furniture. The center os is currently 96 percent occupied.
A nine-story medical/professional building was also included in the transaction, the company said in a release.
"We are pleased to expand our owned portfolio in Chicago with the addition of Golf Mill Shopping Center," said Brian Kosoy, managing principal and CEO of Sterling Organization. "Our team is committed to finding ways to add both economic value to the asset and social value to the community this shopping center serves."
Golf Mill has all of the ingredients we pursue in value-add retail investment opportunities: a dense infill location with excellent real estate fundamentals, tenants paying below-market rents and what we believe are fixable complexities. It is now our responsibility to proactively re-establish Golf Mill's position as an iconic and dominant property in the near northwest suburbs of Chicago."
Michael Horne, regional director for Sterling Organization's Oak Brook office, will lead the company's plans for the property.
"As a native Chicagoan, I am well aware that Golf Mill has a lot of history," Horne said.
Golf Mill opened in 1957 as an open-air shopping center offering office, retail and entertainment businesses. It underwent a major renovation to enclose a portion of the center in 1986 and a food court was added. Target was built on the north side of the property near Kohl's in 1988, followed by Value City Furniture in 2005 and AMC Theaters in 2006.