Yorktown mall sold for $196 million
Global investors have acquired Lombard-based Yorktown Center for about $196 million and plan to remodel the property and change the mix of stores inside.
The deal, in the works for about 8 months, was signed on Tuesday but announced on Thursday, said Kristi Huller, a spokeswoman for New York-based Kohlberg Kravis Roberts & Co., one of the investors with YTC Pacific.
"Ultimately, we hope to create an even more pleasant shopping experience for residents, and we believe that there are a number of near and long-term improvements that will help make this happen," Huller said.
Some immediate initiatives include upgrading the lighting, signage, food court and entrances. Over the long-term, the new owners will look at ways to improve the tenant and merchandising mix, Huller added.
The investors said they were drawn to the consumer demographic, including density and household incomes, and KKR's experience as investors in the retail space, including Toys R Us, Dollar General and Academy Sports.
"We recognize that Yorktown Center could benefit from a remerchandised tenant mix and additional capital improvements, which we plan to make," Huller said.
Yorktown has about 150 stores sitting on 130 acres. It includes national retailers and restaurants, such as The Capital Grille Restaurant, Victoria's Secret, American Eagle Outfitters, Gap, AMC Theatres, Forever 21 and department store chains JC Penney, Carson Pirie Scott, and Von Maur.
Yorktown has been under private ownership since it opened in 1968. The mall, which sees more than 10 million shoppers a year, targets customers with an average household income of nearly $109,000.
Co-investor YTC Pacific -- a partnership between Pacific Retail Capital Partners, Collarmele Partners LLC and Peter Fair of Continuum Partners -- will manage the daily operations of Yorktown. In addition to focusing on optimizing the retail selection, near-term plans include upgrading the lighting, signage, food court and entrances, the firm said in a statement.