Inland Real Estate Corp. To Develop 133,000-Sq. Ft. Shopping Center in Chicago
- Sep 12, 2014
Inland Real Estate Corporation recently announced that it has entered a joint partnership to develop a 133,000-square-foot shopping center in Chicago’s Archer Heights neighborhood. Inland’s joint venture with Dutch pension fund PGGM has formed a partnership with Pine Tree Commercial Realty, L.L.C. and IBT Group, L.L.C. to develop Pulaski Promenade, a power retail and hospitality destination in southeast Chicago.
Located at 4064-4200 S. Pulaski Road, the former industrial site was used to house the Rock Tenn. Co. which produced packaging and paperboard up until the building was demolished in 2004. The site has been vacant ever since.
The IRC-PGGM partnership acquired the land earlier this month, and plans to begin construction in October. According to a news release, the space is currently over 80 percent pre-leased, with tenants including Marshalls, Michaels, Ross Dress for Less and PetSmart. The site’s location in a busy trade area that includes Target and Pete’s Fresh Market will offer a clear advantage to Pulaski Promenade retailers.
“The property’s high traffic volumes and strong demographics make it an attractive location for retailers looking to add new stores in infill areas with established population bases,” says Scott Carr, chief investment officer for Inland Corp. “In addition, the Pulaski Promenade project is an example of our strategy to utilize our relationships with local developers to construct high quality shopping centers that we expect to ultimately add to our portfolio at better than market pricing.”
According to a City of Chicago Staff Report, the total cost of the project will amount to almost $34 million, and is expected to generate 305 permanent jobs and 205 construction jobs. The development project will also incorporate LEED Core and Shell (CS) Certification and will include a 100 percent green vegetable roof.
Stores at Pulaski Promenade are expected to open in spring 2016. The IRC-PGGM venture will have the option of purchasing 100 percent ownership of the property upon completion. The partnership between IRC-PGGM, Pine Tree Commercial Realty and IBT Group is also working on the development of Evergreen Promenade in Evergreen Park, Ill., a project expected to open by the end of 2014.
Renderings courtesy of Sorce Architecture via IBT Group