Malls around the country are a dying breed, and Walton Street Capital’s latest sale highlights their potential for extinction.
A venture led by the Chicago-based real estate investment firm sold Poplar-Prairie Stone Crossing mall in Hoffman Estates for 30 percent below what it paid for the property five years ago, according to Crain’s.
A group led by Alabama-based Harbert Management paid $32.3 million for the 317,000-square-foot mall, well below the $46.6 million the Walton Street venture paid, according to the report. The mall is about 75 percent occupied, after its largest tenant, Sports Authority, vacated, Crain’s reported.
Walton Street has been selling off chunks of its property around the Chicago area recently, including a portion of retail space on Michigan Avenue in May.
Chicago’s retail vacancy rate has also been rising, and last year, it was at its highest rate in nearly a decade.