The sale of a suburban Chicago mall to a private investor who plans to close it has left business owners scrambling for space.
A subsidiary of Jericho, New York-based Kimco Realty Corporation has sold Elgin’s Town & Country shopping center in Elgin to the investor, according to a press release from Chicago’s Prodigy Real Estate, which represented the seller. The statement did not reveal the price and a Kimco spokeswoman declined to provide details.
The 179,000 square foot property at 308 South McLean Boulevard includes the Elgin Mall and a grocery store, Elgin Fresh Market, as well as a Family Dollar, Subway, Taco Bell and Aaron furniture store. The property was built in 1958, according to a listing on LoopNet.
The property manager has advised Elgin Mall vendors who rent space inside the mall that it will be closing and should be out by the end of August, the Elgin Courier-News reported. The mall has been in operation for 20 years, according to the newspaper.
The business owners have formed a corporation and will be allowed to stay in the mall while they strike a deal, according to the Courier-News.
Mario Farfan, executive director of the Northwest Hispanic Chamber of Commerce, learned over the weekend that the mall would be closing, according to a post from the group’s Facebook page. More than 100 vendors had received move-out notices by the end of August, the group said.
The chamber said the sellers were progressing toward a contract to extend their leases at the mall for nine months. The group said they and the Illinois Hispanic Chamber of Commerce are working with sellers to help them find space.
This isn’t the first time a suburban Chicago mall owner has been at odds with the local community. New York’s Kohan Retail Investment Group fell behind on its tax bill for six plots of Spring Hill Mall property in June, angering local leaders. In Calumet City, the mayor is pushing Namdar Realty Group, owner of the River Oaks Mall, to sell the property to make way for his plan to redevelop it into an entertainment center.
A Chicago real estate investment firm acquired a struggling shopping center in Bolingbrook for $30 million in April, causing Starwood Capital Group to suffer a steep loss on the property.
Other recent suburban mall deals in the area include a local investment firm’s $16 million profit on a Naperville mall, an Arkansas company that bought a 50-storey complex 000 square feet in Lake Forest for $20 million and $30 from local investor North American Real Estate. million purchases from Glen Ellyn’s Market Plaza.