Riveroaks Properties’ Afzal and Shireen Ahmad; 9501 West 171st Avenue (Google Maps, Northwestern.edu)
{A partially}-leased procuring heart within the southwest Chicago suburb of Tinley Park took a $1 million loss in its latest sale, demonstrating an uneven marketplace for retail properties.
Riveroaks Properties LLC unloaded the almost 300,000-square-foot property at 9501 West 171st Avenue for $8.6 million earlier this month, greater than a decade after shopping for it for $9.6 million in 2011, based on Cook dinner County property data. The customer was Tinley Park IL LLC, a company with an deal with in Woodstock, Maryland.
Colleen Kaczmarek with Riveroaks Properties mentioned the worth gouge was because of the property’s vacancies. It was absolutely leased when it final bought in 2011. The company’s managers are Afzal and Shireen Ahmad, based on data.
Whereas the pandemic upped the worth of every day wants retail belongings and elevated the sale costs of grocery-anchored procuring facilities all through the Chicago metro space, some procuring corridors and suburban malls have seen sharp declines in lease occupancy charges.
Suburban retail efficiency has strengthened this 12 months and has outpaced restoration in metropolis procuring corridors together with the Magnificent Mile, the Loop and River North.
Total, retail emptiness within the Chicago space was down 50 foundation factors within the second quarter of 2022 in comparison with the identical interval in 2021, down to six.3 p.c in June, based on a report from Marcus & Millichap. The common asking lease went up by 2.6 p.c throughout that timeframe, reaching $18.26 per sq. foot in Q2 of 2022.
In close by Orland Park, Chicago-based builder Key Improvement Companions cashed in on a retail property that it transformed from a vacant Toys-R-Us to 4 single and multi-tenant buildings, netting $17.6 million with a latest sale. That property is an outlet of the Simon Property Group-owned Orland Sq. Mall, which has had its personal struggles, together with a vacant Sears retailer which will even be poised for redevelopment.
