CBRE brokers Oak Grove Plaza sale in Dallas suburb
Los Angeles — CBRE’s national retail investment group has arranged the sale of Oak Grove Plaza, a 120,491-sq.-ft. retail center anchored by Kroger Signature, to Chicago-based LaSalle Investment Management.
CBRE marketed the property, which is located in the Dallas suburb of Sachse, Texas, on behalf of Invesco Advisers.
Mid-America: Chicagoland retail development up
Oakbrook Terrace, Ill. — Shopping Center development in Chicagoland has improved significantly in recent years. Activity showed a 98.7% increase in total sq. ft. from 2012 to 1013, according to the “Chicagoland 2014 Shopping Center Report” just issued by Mid-America Real Estate Corp.
In 2013, owners developed approximately 2.26 million sq. ft., compared to 1.14 million sq. ft. in 2012.
And there is more to come. Andy Bulson, Mid-America principal/VP and author of the report, estimates that development in 2014 will reach 2.64 million sq. ft. “We are still significantly below the 30-year average since we began tracking development, however, continued growth seems likely,” Bulson says.
Grocery-anchored centers continue to drive activity. Supermarkets anchored 10 of 15 planned centers in 2013. This year supermarkets will anchor 14 of 17 planned developments
Mariano’s is leading grocery-anchored development in Chicago, with 348,000 sq. ft. developed in 2013 and plans for an additional 683,000 sq. ft. for 2014. Wal-Mart trails Mariano’s in planned sq. ft. development for both 2013 and 2014.
While Mid-American did not track re-tenanting of locations in the report, Dominick’s decision to move out of Chicago will likely affect new development. “The re-tenanting of old Dominick’s locations will satisfy the growth needs of many retailers, therefore potentially stalling new development projects that are anticipated for 2015 and beyond,” says Bulson.
While self-development by major retailers remains common, local development is re-emerging. In 2013, 490,000 sq. ft. were self-developed by Target, Costco, and Menard’s. An additional 634,000 sq. ft. of self-developed projects are planned for 2014, two of which are being developed by Wal-Mart.
Wal-Mart, Costco, and Menard’s will likely continue to prefer to develop their own sites.
Developers produced 78% of new development in Chicagoland during 2013. This trend is expected to continue in 2014, with developers responsible for 76% of planned projects.
“We expect to continue to see self-development as the preferred deal structure for many retailers in the coming years,” says Bulson.
Activity in the suburbs is growing as well, according to the report. In 2012, four of seven new projects took place in the city of Chicago. Last year, however, 10 of 15 new projects took place in the suburbs. Looking ahead, 11 of 17 projects planned for 2014 will be in the Chicago suburbs.
14 new tenants to Towne Centre at Laurel
Owings Mills, Md. — Towne Centre at Laurel in Laurel, Md., has announced leases for 14 new retailers and restaurants. The $130 million, 400,000-sq.-ft. mixed-use redevelopment of the former Laurel Mall is now 85% leased and under construction. The first phase is scheduled to open in March with the reopening of a new 70,000-sq.-ft. Burlington Coat Factory.
The remainder of the project will open this fall, featuring Regal Cinemas, Sports Authority and the first Harris Teeter in Prince George’s County, along with the following 14 new tenants:
• B.J.’s Restaurant & Brewhouse, serving handcrafted beer and American cuisine, in the restaurant chain’s first Maryland location.
• Outback Steakhouse, an Australian-themed casual restaurant offering steak, seafood, ribs, chicken and pasta dishes.
• Old Navy, offering affordable fashion for men, women, children and maternity.
• Panera Bread, featuring fresh bakery goods, soups, salads, sandwiches and catering.
• Party City, offering discount party supplies, costumes and accessories.
• Noodles & Company, specializing in customizable pasta dishes, salads and sandwiches influenced by American, Mediterranean and Asian flavors.
• DTLR, specializing in streetwear, including urban clothing, hats, shoes and accessories.
• Kay Jewelers, the largest specialty retail jeweler in the world.
• Subway, offering sandwiches, salads and breakfast items with a wide variety of low-calorie selections.
• Blaze Pizza, serving fast-fired, custom-built artisanal pizzas.
• BurgerFi, focusing on specialty burgers made with all natural, free-range beef.
• Express Urgent Care, a convenient, lower-cost alternative to visiting a hospital emergency room, providing walk-in care for injuries and illnesses.
• Massage Envy, a national leader of affordable massage and spa services.
• Tutti Frutti, the world’s largest self-serve frozen yogurt company, with over 100 tart, creamy or soy-based flavors.
AEW and Somera bought the former Laurel Mall in 2006, and Greenberg Gibbons, the developer, joined the revitalization project in 2011. Work has been underway since August 2012.