Arboretum of South Barrington sold to Starwood
The Arboretum of South Barrington, a shopping mall that has faced foreclosure in recent years, has a new owner, according to Village President Paula McCombie.
Chicago-based The Starwood Retail Properties, part of Greenwich, Connecticut-based Starwood Capital, acquired the mall and closed the deal Tuesday, after asking village officials for the last water bill and completed tax paperwork on the property transfer.
"I think it will be beneficial to have someone like Starwood, who has other shopping malls and knows how to handle shopping centers, come into the village," McCombie said.
The sale price may be about $100 million, according to published reports, but executives with Starwood and with co-owner Jaffee Cos. did not return phone calls.
Starwood had acquired a majority interest in seven regional malls in the United States from the Westfield Group in November 2013. This includes the Chicago Ridge Mall in the South suburbs and Louis Joliet Mall in Joliet. It also has The Promenade in Bolingbrook.
The Arboretum offers about 419,000 square feet of retail stores and restaurants at Routes 59 and 72. It has included top retailers, including J. Jill, Chico's, Arhaus Furniture and others as well as major restaurants including Cooper's Hawk Winery & Restaurant.
The Arboretum opened in 2008, at the start of the worst economic downturn since the Great Depression. It then faced foreclosure in 2011, but Jaffe partnered with Long Wharf and kept the property afloat.
"The property has faced financial problems, but the product itself had done quite well," McCombie said. "And Jaffe has been great to work with, and we hope he will continue to manage the property."
Last September, Michael Jaffe, principal of The Jaffe Cos., had said The Arboretum would be put on the market since it was finally thriving after facing foreclosure. He attributed the center's improvement to the economic recovery and the belief and support of the community.
The sale will allow Jaffe and Long Wharf to retrieve their investment and pay back their lender, the Canadian Imperial Bank of Commerce.