X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

AURORA, IL-Simon Property Group, Inc. is expecting a 13% return from its investment in Chicago Premium Outlets, which is being co-developed here with Chelsea Property Group. The Indianapolis-based REIT believes the project at Farnsworth Road and the East-West Tollway, along with another outlet mall project with New Jersey-based in Las Vegas, is a good bet despite its proximity to Westfield America’s 1.4-million-sf Fox Valley Mall.

“Chelsea’s done a great job of becoming the dominant provider of space in that sector, and they are very selective about the projects they pursue,” says Simon Property Group president and chief operating officer Richard S. Sokolov in a recent earnings conference call. “They only pursue projects where they have demand for their manufacturers in that market.”

A similar project co-developed by Chelsea and Simon in Orlando opened 100% leased, Sokolov notes. “The leasing that we’re expecting is very rewarding,” he adds.

Although Chelsea Property Group and Simon Property Group, Inc. are paying the estimated $96 million cost of the 435,000-sf Chicago Premium Outlets up front, the city will eventually reimburse the co-developers 25% of the cost. The money will come through tax increment financing and reimbursement of the city’s share of sales tax revenue generated by the new outlet mall, set to open in the second quarter of 2004.

“More than $2.5 million in annual sales tax revenue will be realized by the city of Aurora once the obligation of the TIF is realized,” says Aurora Economic Development Commission executive director Sherman L. Jenkins.

City officials and representatives from Chelsea Property Group recently broke ground on the project.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.