A Chicago investment firm has made nearly $16 million in profit on the sale of a Naperville mall it bought during the pandemic.
Northpond Partners has sold the 115,000 square foot Naperville Plaza to the Jacksonville REIT, Regency Centers, for more than $52.4 million, Crain reported. Northond paid $36.5 million for the property in December 2020.
Regency said it paid the highest price, which represented a 44% increase in value over just 16 months, due to the property’s outlook.
“Naperville Plaza is an ideal acquisition for Regency because of its diversity of tenants, high barriers to entry and connection to the local community,” Nick Koglin, vice president of Regency, said in a statement.
The mall has survived the pandemic mainly thanks to its tenants, who offer products that people are more likely to buy in-store than online. Two grocery stores, Casey’s Foods and Trader Joe’s occupy nearly 41,000 square feet between the two. A pharmacy, a Firestone auto shop and a Sherwin Williams paint store also have leases in the center with other smaller tenants.
Malls with stores that focus on clothes or other goods that people like to buy online have had a harder time staying afloat. Centers like Naperville Plaza that have a grocery store have had a bit of an easier time holding up. Naperville Plaza is approximately 96% leased.
The property value has increased mainly due to the investment market and not so much due to the major improvements made by Northpond.
Northpond has also invested in the Shops on Elm Place, Glenbrook Marketplace, a Highland Park shopping centre, a Glenview shopping center and the former Lawry steakhouse in River North.
With the latest sale, Regency now owns 11 malls in the Chicago area, including Clybourn Commons on Chicago’s Near North Side, Mellody Farm in Vernon Hills and Westchester Commons.
[CCB] —Victoria Pruitt