CHICAGO—Archer Station, a fully leased four tenant shopping center located at 2620-2640 W. Pershing Rd. in Chicago, was just sold for $24,312,811. LA Fitness, Ross Dress for Less, AT&T Wireless and Athletico Physical Therapy occupy the recently-developed property, located at the signalized intersection of Archer Ave. and Pershing Rd. on the South Side.
Although this property is not located in one of the city's top retail destinations, commercial and residential buildings do fill the surrounding area and provide significant barriers to entry. Furthermore, I- 55 is just one-half mile to the north of the property, and the 35th & Archer CTA Orange Line “L” Station is just blocks away. The surrounding Brighton Park neighborhood has attracted a lot of interest from homeowners, and was recently picked by Redfin as the third hottest neighborhood in Chicago.
Randy Blankstein and Jimmy Goodman of the Northbrook, IL-based Boulder Group represented both the seller and purchaser in the transaction. The seller was the developer, a Midwest-based company and the purchaser was an institutional investor.
“The property's superior infill location within a core market and rental escalations resulting in high demand for this investment opportunity,” says Blankstein, president of Boulder. Goodman, a Boulder partner, adds that “this property provided the investor with the unique opportunity to acquire a core shopping center that is tenanted by well-known retailers.”
A recent report on the region's retail market by Marcus & Millichap found that investors have shifted their focus to multi-tenant properties like Archer Station. The segment “recorded an upswing in trading entering the year and will be an investor favorite moving forward,” according to the firm.
Archer Station is a green development. It includes features such as permeable pavers in the parking lots and all of its buildings were built with high energy efficiency standards.
LA Fitness' 15-year lease expires in February 2031. It features 10% rental escalations every five years throughout the primary term and in each of the four 5-year renewal option periods. Ross Dress for Less has a 10-year lease that began in December 2016. It features a 10% rental escalation in the sixth lease year and escalations in each of the four 5-year renewal option periods. AT&T just executed a seven-year lease that features a 10% rental escalation in the sixth lease year. And Athletico executed a new seven-year lease with a 5.9% rental escalation in the fifth lease year and annual escalations in each two 5-year renewal option periods.
CHICAGO—Archer Station, a fully leased four tenant shopping center located at 2620-2640 W. Pershing Rd. in Chicago, was just sold for $24,312,811. LA Fitness,
Although this property is not located in one of the city's top retail destinations, commercial and residential buildings do fill the surrounding area and provide significant barriers to entry. Furthermore, I- 55 is just one-half mile to the north of the property, and the 35th & Archer CTA Orange Line “L” Station is just blocks away. The surrounding Brighton Park neighborhood has attracted a lot of interest from homeowners, and was recently picked by Redfin as the third hottest neighborhood in Chicago.
Randy Blankstein and Jimmy Goodman of the Northbrook, IL-based Boulder Group represented both the seller and purchaser in the transaction. The seller was the developer, a Midwest-based company and the purchaser was an institutional investor.
“The property's superior infill location within a core market and rental escalations resulting in high demand for this investment opportunity,” says Blankstein, president of Boulder. Goodman, a Boulder partner, adds that “this property provided the investor with the unique opportunity to acquire a core shopping center that is tenanted by well-known retailers.”
A recent report on the region's retail market by Marcus & Millichap found that investors have shifted their focus to multi-tenant properties like Archer Station. The segment “recorded an upswing in trading entering the year and will be an investor favorite moving forward,” according to the firm.
Archer Station is a green development. It includes features such as permeable pavers in the parking lots and all of its buildings were built with high energy efficiency standards.
LA Fitness' 15-year lease expires in February 2031. It features 10% rental escalations every five years throughout the primary term and in each of the four 5-year renewal option periods.
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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.
