(For more retail coverage, click GlobeSt.com/RETAIL.)
CHICAGO-Archon Group LP, a subsidiary of the Goldman Sachs Group Inc., in conjunction with Monroe Investment Partners LLC, a local private partnership, acquired a 50-acre site on Chicago's South Side for the joint venture development of a new 420,000-sf retail power center to be called Chatham Market.
The project, which will be built on the Ryerson steel plant site at 83rd Street and Stewart Avenue near the Dan Ryan Expressway, is moving forward immediately, says Curt Bailey, director of retail investments at the Chicago regional office of Archon. The development is expected to cost nearly $120 million, but is expected to receive more than $30 million in tax increment financing dollars.
Thus far, Archon has signed home improvement retailer Lowe's to anchor the center, which will utilize 130,000 sf. The project is designed to accommodate two big-box anchors and by a mix of other category-leading retailers ranging from 15,000 sf to 45,000 sf, plus specialty shops.
Bailey says that while center will bring a much-needed economic boost to the area, the South Side region offers a dense and mature consumer base. According to his figures, the median income for the area is $50,000. "I think there is a dearth of 50-acre retail sites available in the City of Chicago, especially with an established retail node and outstanding density," Bailey tells GlobeSt.com. "The fact is that this area is under retailed."
Archon is also heading up Poplar Creek Crossing, a 400,000-sf retail center anchored by a 124,000-sf Target under construction in suburban Hoffman Estates. It also was a joint venture partner in the redevelopment of the 550,000-sf Brickyard Mall on Chicago's Northwest Side, which re-opened in 2004.
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