Newmark has been exclusively retained to sell Randhurst Village, a 931,798-square-foot open-air retail power center on a 94-acre site in the northwest Chicago suburb of Mount Prospect, Illinois.
Anchored by Costco and Jewel-Osco, the property is expected to trade at roughly $100 million – a valuation that, when realized, would make it one of the Chicago area’s largest retail transactions in recent years – and features a sales-tax incentive program that boosts cash flows.
Newmark Retail Capital Markets Senior Managing Director Keely Polczynski is representing the seller, a joint venture between DLC Management and Rialto Capital.
Constructed in the early 2010s, Randhurst Village occupies the site of a former 1960s-vintage enclosed mall that was redeveloped for $200 million. The project included a city of Mount Prospect sales-tax incentive intended to increase revenue from the property. The regional center, now the third busiest in the state, also includes an independently owned 140-room hotel.
With more than 351,000 square feet of new leases and renewals with national tenants executed over the past year, the property is 92% leased (excluding Carson Pirie Scott vacancy) with a weighted average remaining lease term of 7.4 years, further strengthening the asset’s stability and long-term performance. Randhurst Village benefits from a strong tenant mix, with 82% of income derived from national retailers and 75% from investment-grade tenants. Other major tenants include Macy’s, AMC Theatres, HomeGoods, Orangetheory Fitness, PetSmart, Planet Fitness, Skechers and T.J.Maxx.
The property is situated at the highly trafficked intersection of West Rand and North Elmhurst Roads, where 69,000 cars pass daily. The average household income within three miles of the property is $145,000, and 54% of local residents have a college degree.
