Illinois Firm Pays $30M for 710,000-SF Mall

GRAND FORKS, ND-The 710,000-sf Columbia Mall here has been acquired for $30 million by CK Development, a Chicago-area real estate. The transaction marks the firm’s largest acquisition and its second in less than four months. The seller was New York-based Met Life.Opened in 1978 and renovated in 2000, the regional mall is 97% occupied. It has three major department stores and 70 specialty stores located on a single level. Major tenants are Marshall Field’s, JCPenney and Sears. Columbia Mall is the dominant regional mall for 15 counties, providing a shopping venue for nearly 100,000 consumers. GK president Garo Kholamian says the acquisition fits the company’s strategy of acquiring where it can be a leading player. “We see an outstanding opportunity in Columbia Mall to add value to an already strong property,” says Kholamian. “The Red River Valley’s steady growth, diverse economy and educated population were key factors in our decision.” Forbes/Milken Best Small Places for Business 2002 ranked Grand Forks and the surrounding region as one of the best small places to do business in the US. Grand Forks also earned four stars in Expansion Management magazine’s fifth annual ranking of quality of life ratings for MSAs in the US.The property is bounded by Interstate 29 and Columbia Road in southwest suburban Grand Forks. I-29 is the major North Dakota interstate extending from Canada to South Dakota. US Bank provided GK financing for the acquisition. George Good, Bob Mahoney and Rich Frolik of CB Richard Ellis in Oak Brook, IL had the disposition assignment for Met Life. GK Development represented itself.GK’s portfolio includes shopping centers and office properties in the Chicago metropolitan area, shopping centers in Florida and an office property in Las Vegas. The real estate company currently owns, manages and leases a combined 1.8 million sf of buildings.