Developers Getting Chances to Redo Older Malls
Its time to rethink the mall, and a mix of uses seems the best bet.
CHICAGO—Most experts agree that many areas of the US are over-retailed, and it’s going to take a lot of work to reconfigure these outdated properties. Oak Brook, IL-based Kensington Development Partners, along with its partner IM Properties, is about to launch one such effort in the Chicago suburb of Morton Grove. The partners just completed the acquisition of the town’s 310,000-square-foot Prairie View Plaza Shopping Center and plan to complete a long-delayed repositioning and redevelopment of the 26-acre property.
The sale price for the property, 6763 Dempster St., was not disclosed, but Cook County property records show Kensington paid $11.3 million. The seller, which was represented by Edgemark Properties, was Canadian-based Federal Construction, Inc.
“The long-term goal is to demo the majority of the center for redevelopment; but no final plans have been determined at this stage,” John S. Schoditsch, principal, Kensington Development Partners, tells GlobeSt.com.
“The goal is to do as much retail, entertainment and restaurant space as market demands,” he adds. “After fulfilling market demand, the village and the developer are open and realistic to other viable uses, including multifamily, medical office and fitness. We’re currently in discussions with numerous users, but can’t disclose names at this time.”
Experts on transforming retail properties into mixed-use all say support from the local municipality is essential. And Kensington appears to have it.
“We’re thrilled to now be working with an active investment group that has been successful on numerous other projects, as opposed to the passive investors that previously owned the property,” says Morton Grove Mayor Dan Di Maria.
Schoditsch says Kensington has done a number of redevelopment and repositioning projects, including ones in the Chicago region. It purchased an old Kmart in suburban Lombard, as well as an old Dominick’s-anchored center off 75th St. in Naperville, and redeveloped each into a new Mariano’s. In addition, it purchased a former ITW facility in Harwood Heights and knocked down the manufacturing portion of the property and built retail space for Art Van Furniture, Portillo’s and Raising Cane’s.
“A well-positioned site in a demographically-rich market like Morton Grove, with extensive barriers to entry, has great potential for success,” adds Schoditsch. But regardless of the final path of the development, the company intends to maintain the existing 3,120-square-foot Bank of America outparcel as well as the approximately 10,500-square-foot strip center currently anchored by Starbucks.