Next Realty Buys Lincolnshire Commons

CHICAGO—Next Realty LLC and a joint venture partner have completed the acquisition of Lincolnshire Commons, a class A shopping center in north suburban Lincolnshire originally developed in 2007 by General Growth Properties. The acquisition was on behalf of Next Realty Investment Fund VIII. The purchase price was not disclosed. And although the 130,000-square-foot center is relatively new and already has an occupancy rate of 90%, Next Realty officials tell GlobeSt.com that they can still add value to the Lake County property.

“It has a raw space that has never been occupied,” says Marc Blum, president and chief operating officer. The roughly 4,000-square-foot space is “a cold, dark shell.” It may have originally been vacant due to the recession, which hit just after the center was finished, "but the recession has been over for years."

Next has about 20 properties in the Chicagoland area, says Eteri Zaslavsky, director of acquisitions. Its portfolio has an overall occupancy rate of about 97% or 98%, and she is confident that this property has at least that potential. “You make your money on that last 10%.”

“Our office is only 15 minutes away,” adds Blum. “Buying in your backyard is a good thing; we really understand this market.”

Lincolnshire Commons sits at the northwest quadrant of Milwaukee Ave. and Aptakisic Rd. about 30 miles from downtown Chicago and near a dense collection of retail outlets, including the Westfield Hawthorn mall, in Vernon Hills, another affluent northern suburb.

“Vernon Hills is really a retail destination,” says Blum, and this proximity should help Next fill those few remaining spaces. The latter center plays an important role in this corner of the submarket, since there are retailers which want to be in the area but not necessarily within a large mall. “A lot of the retail property in Vernon Hills suffers from being set back from the road,” making Lincolnshire Commons a popular option for users, especially restaurants, with customers that want to get in and out quickly.

The center already features a mix of upscale restaurants, fast casual dining, fashion shops and convenience-oriented retail. The largest tenants are Barnes & Noble, DSW Shoe Warehouse, Cheesecake Factory, Fleming's Prime Steakhouse, Kona Sushi, and Talbots. Next Realty is in discussions with several additional tenants for the remaining vacancy.