Deer Park Town Center sold in reported $125 million deal
For the second time in as many days, a major northwest suburban shopping center has been sold, this time for a reported $125 million price that makes it the largest Chicago-area retail deal in a decade.
Deer Park Town Center in Deer Park was acquired through a joint venture by Connecticut-based developer Brand Street Properties and AEW Capital Management, a Boston-based real estate investment manager, the firms announced Thursday.
The 410,000-square-foot open-air shopping center at Rand and Lake-Cook roads hosts more than 60 tenants, including upscale retailers Apple, Crate & Barrel, Williams Sonoma and Lululemon, as well restaurants including Biaggi’s Ristorante Italiano, Sweetgreen, Stoney River Steaks, Ancho & Agave and California Pizza Kitchen.
The real estate news website The Real Deal first published the reported terms of the sale.
The announcement comes a day after officials in Mount Prospect confirmed the $95 million sale of the Randhurst Village shopping center to a Nevada-based real estate firm.
Jordan Brandes, senior vice president of acquisitions at Brand Street Properties, said Thursday that the company had been evaluating Midwestern sites for some time as it looks to expand its largely East Coast footprint.
Deer Park, he said, has the location and mix of tenants the firm was seeking.
“The asset has established itself as the dominant, open-air shopping destination in the region, and we look forward to building upon that success long-term,” Brandes said.
The reported $125 million price tag tops the $122 million sale of the Village Crossing shopping center in Skokie that was announced earlier this month. That was the largest retail property sale in the region since $147 million was paid in 2016 for the retail portion of the Sullivan Center on State Street in Chicago.
Deer Park Village President Greg Rusteberg said in an email Thursday that village officials only recently learned of the sale and are still gathering specific information surrounding the change in ownership and management.
“But our initial reaction is … ‘Welcome to Deer Park!’” he wrote. “The Village looks forward to formulating a strong and vibrant partnership for the benefit of our residents, merchants and shoppers.”
According to the new owners, the center is currently 85% leased and stands to benefit from a refreshed remerchandising strategy under new ownership. Brand Street will be responsible for the day-to-day management, operations, and leasing of the center, the announcement states.
Public gathering spaces will be reimagined to drive traffic and enhance customer experience, the new owners said.
“Whether it be through landscaping, hardscaping or other improvements, we’re looking to enhance the central area where a lot of the events take place today,” Brandes said.
Brand Street is already in discussions with potential tenants to fill some of the shopping center’s vacant spaces. Beyond that, he said, the company intends to spend time acclimating the community before making any notable changes to the mall.
ckeeshan@dailyherald.com