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ALGONQUIN, IL-Making its first foray into the "lifestyle center" arena, Inland Real Estate Corp. has joined with a client of Morgan Stanley Real Estate to buy the 565,000-sf Algonquin Commons for $154 million. The deal more than doubles the value of the joint venture's portfolio, as it has acquired more than $280 million in properties, says Inland Real Estate Corp. chief operating officer Mark Zalatoris.

Opened in 2004 by Cincinnati-based Jeffrey R. Anderson Real Estate, the Randall Road lifestyle center is 99% occupied. Borders, Circuit City, Dick's Sporting Goods, Office Max, Old Navy, Trader Joe's and Wickes Furniture are among the larger of the 82 tenants. The tenant roster also includes Ann Taylor, Pottery Barn, Sharper Image and Williams Sonoma.

Average household income within a mile of the corner of Randall and County Line roads is $127,355, according to Mid-America Group, which handles leasing for two neighboring centers, Randall Crossings and Woodscreek Commons. Going out five miles, an area that is home to nearly 150,000, average household income remains in six figures, according to Mid-America Group's figures.

Jeffrey R. Anderson Real Estate owns one other lifestyle center in the Fox Valley, Geneva Commons, which opened in 2002.

Algonquin Commons is not the only suburban retail center to change hands in recent days. The 309,864-sf Marketplace of Matteson in that south suburb was sold to a joint venture between New Plan Excel Realty Trust and the Galileo Funds for a reported $24 million, and at a 7% capitalization rate. Cornerstone Property Fund sold the mall anchored by Cub Foods, A.J. Wright and Burlington Coat Factory. Mid-America Real Estate Corp. principal Rick Drogosz represented Cornerstone Property Fund.

Instant Insights /

Algonquin Commons Commands $154M Sales Price

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