Boutique investment firm buys Wilmette mall amid partial conversion

Newport Capital paid $72M for Edens Plaza, which is expected to house a new medical center

Edens Plaza, 3232 Lake Avenue (Credit: iStock)
Edens Plaza, 3232 Lake Avenue (Credit: iStock)

UPDATED 10:26 a.m., Jan. 9, 2019: The Edens Plaza Shopping Center in Wilmette has sold for $72 million, months after village officials approved a plan to build out a large new medical center inside the complex.

The buyer was Newport Capital Partners, a Chicago-based real estate investment firm, according to property records.

Newport will take over a retail center once anchored by a 161,000-square-foot Carson’s department store, whose parent company filed for bankruptcy last year.

The seller — a joint-venture between Chicago firms 11 East Partners and Draper & Kramer — had signed a 10-year lease with NorthShore University HealthSystem in September.

NorthShore’s new facility, set to occupy the former Carson’s space, has an estimated cost of nearly $29 million, according to a village planning document.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

“The addition of the new pediatric care center this year shows the plaza’s versatility in this ever-evolving asset class,” said Newport managing principal Derrick McGavic in a statement. He described the project as “a great example of repurposing vacant retail space.”

NorthShore’s lease states that Newport Capital will expect $83,000 a month from the firm by the end of their term in 2028.

LoanCore Capital funded the deal with a $50.5 million acquisition loan, arranged by Ben Greazel and Joel Simmons of Newmark Knight Frank.

Other retail tenants at the property include Bed Bath & Beyond, Walgreen’s and Five Guys.

Mall owners across the country have turned to conversions as a way to prop up their struggling assets, as retail bankruptcies and competition from e-commerce have left them with a glut of vacancies.