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GK Development Picks Up Downstate Mall for $66 Per SF

BARRINGTON, IL-L&H Real Estate Group of Chicago and Peru Mall Associates LLC get $30.8 million for a 465,672-sf regional mall anchored by long-time tenants Bergner's, JCPenney and Sears and more recently, a 28,000-sf Marshall's.

By Mark Ruda | Updated on December 16, 2005

BARRINGTON, IL-Local retail owner GK Development Inc. has paid $30.8 million for the 465,672-sf Peru Mall, which was sold by L&H Real Estate Group of Chicago and Peru Mall Associates LLC. The tenant roster includes Bergners, JCPenney and Sears, with Marshall’s a recent addition in a 28,000-sf space.

At a price of just $66 per sf, the mall at 38th Street and Route 251 is the sixth regional shopping center that GK Development, Inc. has added to its portfolio in the 18 months. “This transaction fits our strategy for acquiring properties where we can be a leading player,” says GK Development president Garo Kholamian, whose company got financing from KeyBank Real Estate Capital. “Peru Mall is the dominant regional mall within a 55-mile area. We expect to retain that position.” In addition to a trade area with 150,000 potential customers, the area along interstates 39 and 80 has drawn interest from industrial developers, who continue to build warehouse and distribution centers.

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