CHICAGO—Retail investors have largely stopped hunting for deals in outer suburbs, and instead, have focused on the security provided by properties tucked into affluent urban areas and wealthy suburbs. L3 Capital, for example, a Chicago-based real estate investment firm that focuses on institutional-grade retail properties, has just acquired Market Square, a historic retail property with 26 retailers and restaurants in suburban Lake Forest, for $35.5 million.
“This is the most iconic property on the North Shore,” said Michael Schreiber, principal at L3 Capital. “Market Square has been a staple in this area for nearly a century and we believe our strategy of acquiring the best retail properties in top-tier cities will translate well here. The North Shore, and Lake Forest in particular, is one of Chicago's premier residential areas with impressive demographics. We are confident this investment will yield significant long-term value for our firm.”
As reported in GlobeSt.com, L3 recently made its first purchase in the Chicago retail market when it bought four properties for $13 million along the Southport Corridor in the city's Lakeview neighborhood. “We were attracted to this deal because of the strength of this retail corridor,” said Managing Principal Greg Schott at the time. “The properties on Southport represent the type of deals that we are looking for - quality retail assets in prime urban locations.”
Market Square, originally developed in 1916, was designed by legendary architect Howard Van Doren Shaw to resemble an English market square. It was the first designed shopping center in the country and portions of it were added to the National Register of Historic Places in 1979.
The historic center has an eclectic mix of national and local retailers, such as Williams-Sonoma, J. Crew, Bluemercury and Talbots, as well as local institutions like Kiddles Sporting Goods, Forest Bootery and The Lake Forest Shop.
“Part of this asset's appeal is that it attracts both national retailers and successful local businesses,” said Schreiber. “We have no intention of changing this formula, and, if anything, we hope to enhance this equation when opportunities to re-tenant arise.”
He added that the firm will invest heavily over the next two years in infrastructure upgrades, life safety upgrades and historic restoration projects.
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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.
