NEW LENOX, IL-Urban Retail Properties LLC, Center Creek Development LLC and Mansur & Co. announced plans Tuesday to build a $225-million outlet center here. The Spring Creek Outlets of Chicago, to be built on 97 acres at Interstate 355 and Route 6, will also include land for hotels and a senior assisted living facility.
The center will have 550,000 square feet of retail, as well as additional restaurants on the property, and will be completed by Q2 2013. The rest of the property will be offered to hotel and senior developers. Ross Glickman, CEO of Urban, said in a statement that the company is looking forward to getting back to development after the lull from the recession.
Center Creek Principal Jeff Middlebrook tells GlobeSt.com that Spring Creek center will be the total cost of $225 million. The demand has been great, as recent tenant tours and the ICSC RECon brought in prospects, Middlebrook says. “We’re in lease negotiations with about 60 tenants. The first lease went out last week, and we expect more to follow,” Middlebrook says. The venture is not ready to announce the prospects.
The demand isn’t translating into other products, as retail overall hasn’t yet had a great surge in the Chicago area. However, outlets saw gains during the recession, Middlebrook says. “There has been actual rent increases, same store sales remained flat and occupancy remained up in the 90s,” he says.
The hotel and senior property don’t really go with the outlet center, but instead with the new $400 million Silver Cross Hospital going up across the street, as well as other new health care sites. “There’s three medical office buildings going up on the Silver Cross campus, and the University of Chicago and Children’s Hospital are also building medical facilities nearby. They need retail support, there’s not a restaurant for three miles,” Middlebrook says.
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