Oakbrook Mall, the second-largest shopping mall in the Chicago metro area, recently secured a $475 million refinancing and appears to have withstood the pandemic better than some of its peers in the Chicago area.
The 2.6 million-square-foot mall is now 82 percent leased to more than 130 retailers, with three anchors: Macy’s, whose 376,000 square feet is not owned by the landlords; Nordstrom, which is paying percentage rent in lieu of base rent until next April; and Neiman Marcus, which declared bankruptcy in May and re-emerged in September.
The largest non-anchor tenant at the property is Italian-American restaurant Pinstripes, whose 161,000 square feet include a bowling alley, bocce courts, outdoor patios, “fire pits” and event space. The second largest is LifeTime Fitness with 120,000 square feet, on a 20-year lease that was signed in the early days of the pandemic in April.
The open-air complex, home to more than 30 food venues and two AMC theaters, is owned by a joint venture of Brookfield Properties Retail Group and CalPERS. Morgan Stanley and Wells Fargo provided the recent refinancing package, which included a $319 million senior CMBS loan and $156 million in mezzanine.
Documents associated with the securitization provide an up-to-date look at finances at the property.
Oakbrook Center was closed from March to late May due to a state-wide stay-at-home mandate. Rent collections fell to 41 percent in April, and had risen to 80 percent by September. Net operating income for the first nine months of 2020 was down nearly 10 percent compared to the same period in 2018.
As of October, more than 99 percent of stores at the mall by square footage were open for business. The landlords have installed various safety measures such as hand-sanitizing stations and a new air filtration system.