Naperville Mixed-Use Property Commands $88M
- Jan 19, 2017
Chicago—Retail Properties of America Inc. has acquired Main Street Promenade in downtown Naperville, Ill., a 182,000-square-foot mixed-use project that includes approximately 103,000 square feet of retail and roughly 79,000 square feet of office. The asset traded for $88 million.
“The Naperville submarket is an extremely attractive market and one of the few suburban downtowns that offer a vibrant and urban experience,” Matt Beverly, RPAI’s senior vice president of investments, told Commercial Property Executive. “We have seen an inflow of retailers from traditional locations such as malls and strip centers relocate to street retail location in downtown Naperville.”
Located in the Chicago Metropolitan Statistical Area, the property is situated just 30 miles from Chicago and is the destination of choice for shopping, dining and relaxation with over 100 national and boutique stores, 40 national and local restaurants and 300 businesses, epitomizing the work, shop, play lifestyle.
“Naperville is continuing to be the regional destination for shopping and entertainment for the western suburbs as seen by the inflow of retailers to the area,” Beverly said. “RPAI seeks dynamic mixed-use properties that offer shoppers and office users a unique experience. Not only does the property provide the region a unique shopping and dining experience, but provides attractive amenities to office tenants, which is validated by the historical low vacancy of the office gross leasable area.”
Though the center is well occupied, RPAI will utilize its national leasing and operating platform to enhance the shopping and dining experience and execute its long-term strategy.
“We are currently evaluating development plans for the vacant parcel at the property and look forward to working with the City of Naperville to develop a project that enhances the downtown Naperville experience,” Beverly said.
The Property is currently 93.1 percent occupied and features some of the most highly recognized restaurants and retailers within their respective categories, including Anthropologie, J Crew, Soft Surroundings, Ann Taylor, LOFT, Sur la Table, White House Black Market and Hugo’s Frog Bar & Fish House.
According to Beverly, as RPAI assesses a potential acquisition, it focuses on the underlying real estate quality, which is not solely based on current tenancy and configuration.
“We believe the underlying real estate and market will ultimately drive the optimal tenancy mix and configuration as the local market preferences continue to shift and evolve over time,” he said. “RPAI is uniquely positioned to meet these market shifts within our core markets due to our local teams’ expertise coupled with the company’s national operating and leasing platform.”
Images courtesy of Main Street Promenade