ALGONQUIN, IL-Alliance Equities LLC has acquired Algonquin Galleria, a new 83,441-sf shopping center, from Mid-America Development Partners for $22.5 million. The center, at 1515 Randall Rd., boasts anchor tenants including a 30,000-sf Best Buy and a 20,000-sf La-Z-Boy, each with 10-year leases. Shadow tenants include a 40,000-sf Dania and 20,000-sf Ethan Allen, and the Galleria is across the street from the 600,000-sf Algonquin Commons.
“We liked the demographic, we liked the location and we liked the tenant mix,” Ben Reinberg, founder and president of Deerfield, IL-based Alliance, tells GlobeSt.com. “The center has really good real estate, with 360-degrees of residential in the area. We’re located across from a prominent lifestyle center, and we felt the return met our capital.”
Other tenants include Famous Dave’s, Potbelly Sandwich Works, Second Wind Exercise Equipment and Jamba Juice. The center is 81% occupied, with asking lease rates ranging from $25 to $35 per square foot, net. “It’s a brand-new center, so we feel we’ll lease it up fairly quickly,” Reinberg says.
The center is in the northwest suburban submarket, an area Reinberg says is doing well despite widespread economic hard times. “Retail around the country is a little slower, but being in Chicago is advantageous to retail,” he says. “There’s an opportunity to own retail as there is more of a downturn in the cycle. We plan on holding this for quite some time.”