CHICAGO—The New York-based iStar Financial Inc. took control of the iconic Ford City Mall on the city's southwest side last December, after previous owner Sam Zell decided to walk away. And the new owners have just begun planning to revive the one-million-square-foot shopping center, one of the first indoor malls of its kind in the U.S. They have tapped U.S. Equities Realty to manage the space and SRS Real Estate Partners to handle the leasing.
“We know there is a strong need for a full-service retail mall in this area of Chicago and a pent up demand from the community, and we are excited about the opportunity,” says Cynthia Tucker, senior vice president of iStar.
They will begin making initial improvements to the property in 2014, including a façade renovation, updated interior lighting and finishes, and substantial landscaping. Although the property has aged a bit, the Chicago Sun-Times reported early last March that the mall came through the recession with a vacancy rate of just 10%.
“We have a strong track record in successfully repositioning and increasing profitability for properties all across Chicago,” says Katherine Scott, executive vice president of U.S. Equities Realty. “We have hit the ground running working with our strong mall management team that knows what needs to be done at Ford City. We want to make sure it's an attractive shopping destination for families in the surrounding area.”
“We've only been on board a few weeks and we have already received many phone calls from retailers interested in Ford City,” says Ken Galvin, senior vice president of SRS Real Estate Partners. “I'm hearing a strong desire to locate at the mall because of the incredible density and strong retail activity in the surrounding area.”
SRS officials say they will focus on attracting more retailers, including women's and children's apparel for work and school, fine jewelry stores, and other family stores. The new owners also see potential for more community events at the mall. Ford City recently hosted a jobs fair and has plans for other events this summer and fall.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
