SOUTH ELGIN, IL-Phoenix-based Cole Real Estate Investments has acquired 50% of the equity held in the 99%-leased South Elgin Crossing for $34 million. Anchors at the property, which is also owned by Northbrook, IL-based Mosaic Properties and Development, include Best Buy, Staples and PetSmart.
Mosaic purchased the 232,000-square-foot retail center last year, about three years after it was built. The company bought the property for about $24 million from the former owner’s lenders, KeyBank and Wells Fargo.
The center is on South Randall Road, a dense retail corridor with strong demographics and projected growth, Cole EVP and head of real estate investments Thomas Roberts tells GlobeSt.com. “We made Mosaic an offer to purchase it outright, but they wanted to stay in, so we decided to own it together,” he tells GlobeSt.com. “It has the kind of lineup and good credit tenants we look for, it’s a very stable asset.” Mosaic will continue day-to-day management at the property.
A Home Depot anchors the site on a 36-year ground lease, Roberts says. The property also includes a pad that could hold an additional 25,000 square feet, he says. His firm owns a few other retail centers in the Chicago area, as well as some single-tenant properties. “We’re looking for more in the area, but we’re very careful, we’re not looking to take on a lot of risk.”
Scott Holmes, a VP of multi-tenant acquisitions with Cole, represented the firm. Sherwood Blitstein and David Dresdner with Mosaic represented their company. Chris LaBounty and John May with May Center Advisors are credited with bringing the partners together for the deal.
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