SOUTH BARRINGTON, IL-Sources say Boston-based FidelityReal Estate has purchased the first mortgage loan for the472,000-square-foot Arboretum of South Barrington mall, whichopened in 2008, for $57 million. Developer JaffeCos. couldn’t pay the $90-million loan, but was able towork out a deal with Fidelity to remain as a minority partner onthe property.

The lifestyle center opened strong in an area with excellentdemographics, at the intersection of Higgins Road and Route 59. Thecenter didn’t drop tenants; rather, it’s at 85% occupancy, withtenants that include LL Bean, Chico’s, Victoria’s Secret,Pinstripes and Ruth’s Chris Steak House, a total of more than 50retailers and restaurants.

However, the center struggled to achieve its target rents.Jaffe, along with project equity partners RREEF and CalPERS, triedto work out a loan extension in 2010 with lender EuroHypo AG, butwas unsuccessful. EuroHypo sued and the loan was put out for bid,but Jaffe was able to work out a deal to stay on the project as theother partners got out.