Florida firm buys suburban mall in Chicago

Elliot Sasson and Thatcher Woods Center of East Coast Acquisitions (LinkedIn, Google Maps)

A suburban Chicago mall traded hands for $30.5 million, marking the first acquisition by a Florida company in the Midwest and suggesting demand hasn’t cooled for retail-centric malls. grocery stores.

Tampa’s East Coast Acquisitions picked up the Thatcher Woods Center in River Grove this month from Northbrook’s commercial real estate investment firm Pine Tree, according to Cook County records.
This is the 19th addition to the 2 million square foot East Coast portfolio, most of which is in southern states including Florida, Georgia and the Carolinas.

East Coast focuses on retail centers in strong secondary markets that have grocery stores like Rich’s Fresh Market in Thatcher Woods as major tenants. “Necessity and service-driven retailing is what stands the test of time in a rapidly changing retail market,” the company states on its website.

Mid-America Real Estate Corporation represented the seller of the 193,000 square foot property.

Investors have been hungry for such assets, even after trading volume for the asset class hit a record high last year.

Allied Development recently paid $30.2 million to PGIM for the Marshfield Plaza Commercial Area, a 259,000 square foot property located on the south side of town along Interstate 57.

Brian Kosoy’s Sterling Organization sold suburban Chicago’s 146,000-square-foot Hoffman Plaza to Jay Kaiser’s AmCap for $30 million, and New York investment firm Brixmor Property Group took over Elmhurst Crossing malls and North Riverside Plaza in the Chicago area of ​​Montreal. Federal construction in the spring.

According to JLL, grocery-anchored malls accounted for more than a third of nationwide retail transaction volumes in the first quarter of 2022. In 2021, grocery-anchored asset trading hit an all-time high of 735, up 13 from the previous record set in 2014. Businesses spent more than $13.3 billion on properties, the largest share of all commercial property types and the second largest. recorded history.

As shopping center prices have risen, profit margins and capitalization rates, a measure of the rental income generated by a property relative to its purchase price, have fallen.

Edwin S. Wolfe