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BARRINGTON, IL-GK Development, Inc. is moving into Iowa, buying four shopping malls totaling 1.6 million sf from Chicago-based L&H Real Estate Group for $120 million. The company now owns, manages and leases 3.4 million sf in five states.
"This transaction fits our strategy for acquiring properties where we can be a leading player," says GK Development president Garo Kholamian. "Each mall is the dominant regional mall in its trade area providing a shopping venue of choice for nearly 665,000 consumers. We expect to retain that position."
GK Development got financing for the acquisition from a lending group that includes Countrywide Commercial Real Estate Finance, Inc., National City Bank and Prudential Mortgage Capital Co. It also retained Jones Lang LaSalle's retail group as manager of the four properties.
The largest asset acquired is the 572,373-sf College Square in Cedar Falls, where Younkers is among the anchor tenants, just as it is in the other three regional malls. Von Maur and Scheels All Sports also are on the College Square tenant roster.
JC Penney is an anchor in each of the other three recently-sold centers, including the 350,000-sf North Grand Mall in Ames, IA. The mall includes a Sears and five-screen theater.
Menards and Big Lots are among the tenants at the 343,000-sf Marshall Town Mall in Marshalltown, IA. McGregor's Furniture also is a major tenant at the 337,000-sf Westland Mall in West Burlington, IA.
A CB Richard Ellis team of George Good, Rich Frolik and Bob Mahoney represented L&H Real Estate Group.
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