All six centers are anchored by a Dominick's grocery store and fit Jacksonville-based Regency Centers' profile of well-leased assets with minimal vacancies. They also share strong demographics, notes Daniel J. Fox, senior vice president of Midwest investments. The three-mile trade areas around the centers have average household incomes ranging from $70,000 to $96,000.

While Fox declines to disclose the sales price and initial capitalization rate, his company's two most recent acquisitions were at $175 per sf, and a 7.79% cap rate. If Great Lakes Principals got $175 per sf, the deal would be worth $154 million.

The largest piece of the portfolio is the 335,968-sf Deer Grove Centre in Palatine, where Michaels, Dress Barn, Linen's 'n Things, Target, Petco, Great Clips, Radio Shack, Famous Footwear and Hollywood Video also have space. In Glen Ellyn, Hallmark, Bath & Body Works, Cost Cutters and Hollywood Video are in the tenant mix at newly acquired Baker Hill Center, where Dominick's has more than half of the 135,273 sf.

Dominick's also is the dominant tenant at the 123,281-sf Geneva Crossing in Carol Stream, where Hollywood Video, Sally Beauty, Hallmark, GNC, Great Clips and the UPS Store also have space. Dominick's and Hollywood Video are the major tenants at the 99,072-sf Fox Lake Crossing.

The deal also includes the 96,613-sf Stearns Crossing in Bartlett, with Hallmark, GNC, H&R Block and Supercuts among the tenants; and the 87,705-sf Shorewood Crossing in Shorewood, also boasting Hallmark, H&R Block, Hair Cutery and Verizon Wireless in addition to Dominick's.

Regency Centers Corp.'s 408,211-sf Chicago portfolio includes Hinsdale Lake Commons in Willowbrook, Westbrook Commons in Westchester and Franklin Crossing in Frankfort. Occupancy was a combined 95.9% at the beginning of July, according to the REIT's most recent earnings report.

Dominick's anchors Hinsdale Lake Commons and Westbrook Commons, while grocery rival Jewel is the anchor in Frankfort. Dominick's parent Safeway is the REIT's third-largest tenant across its portfolio while Blockbuster is No. 5.

Instant Insights /

Regency Buys 877,912 SF of Suburban Retail Centers

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