CHICAGO—Companies associated with the Inland Real Estate Group of Companies have been on a bit of a retail buying spree in the Chicago suburbs. For example, Inland Real Estate Acquisitions, Inc. just picked up Freedom Commons, an 82,453-square-feet complex in Naperville for $24.4 million. But unlike many shopping centers, it does not have a grocery store and relies instead on restaurants, services and other retail to draw customers.
“It's not your typical grocery-anchored center,” says Daniel Waszak, senior vice president of Chicago-based Quantum Real Estate Advisors, Inc., who, along with Chad Firsel, Quantum's president, helped negotiate the sale between Inland and William Krug of Wm. Krug, Inc. “It's a very unique center in that regard,” but the location on Freedom Dr., north of Diehl Rd. and immediately south of the Naperville exits on I-88, places it amid office complexes that hold thousands of workers, assuring a constant stream of customers. “The site really benefits from the big daytime office population. And at night, many of them go there to grab an after-work drink.”
The complex has four multi-tenant buildings on its western half that include an AthletiCo Physical Therapy, Einstein Bros. Bagels, Scottrade, doctors' offices, and other tenants. In addition, four freestanding restaurants line Freedom Dr., including The White Chocolate Grill; Morton's Steakhouse; Zapatista; and Maggiano's Little Italy. A Cooper's Hawk restaurant, L.A. Fitness facility and Fidelity Investments office occupy single-tenant parcels not included in the sale.
“There's great national recognition of the Naperville market,” Waszak adds. “We had a California buyer very interested in Freedom Commons,” and major investors from both coasts typically notice whenever highly-visible properties in the burgeoning suburb hit the market. “Even if Freedom Commons doesn't have a traditional anchor, $24 million was right where we expected this asset to trade.” The development's history of high occupancy means “there's a good story behind it; investors know it's not a flash in the pan and the cash flow will keep on flowing.”
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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.
