John McLinden’s Hubbard Street Group might have another suburban Chicago retail turnaround in the works.
After cashing out of an Oak Lawn shopping center that had been left vacant by the exit of Kmart with the profitable $76 million sale of a redeveloped and fully leased property, McLinden’s Chicago firm landed Kohl’s to lease a suburban Schaumburg building it bought in December for $9 million.
Kohl’s is moving into a space at 1293 East Higgins Road that was vacated by the Art Van Furniture chain that liquidated in 2020 and shuttered all its stores, according to a lease filed in Cook County property records. The Art Van store had occupied the 71,400-square-foot building built in 1996, just east of a Target in the same shopping center.
It’s the latest example of a Chicago-area big box building landing leases with legacy retailers that have been consolidating their real estate for years and changing their business models to match them to smaller spaces. Earlier this month, Macy’s leased to refill a former Carson’s that closed in 2020 in a two-story, 120,000-square-foot store in the southern suburb of Evergreen Park.
It’s unclear whether Kohl’s is taking the entire building or a portion. A CBRE commercial leasing team was marketing the former Art Van space as potentially divisible into three 24,000-square-foot blocks. Neither Kohl’s nor Hubbard Street returned requests for comment.
Hubbard Street’s purchase of the property in December marked its latest slide in value. Arizona’s STORE Capital had paid $12.3 million for it before Art Van closed and terminated its lease, which had about 17 years remaining as of 2019, according to a former LoopNet listing marketing the property for sale.
The Schaumburg shopping strip also hosts a Dollar Tree and International Fresh Market and has Raising Cane’s chicken and Jersey Mike’s sandwich restaurants in outlot buildings. It’s less than a mile from the massive Woodfield Mall.
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Commercial
Chicago
Macy’s refilling empty Carson’s in suburban Chicago
Commercial
Chicago
Hubbard Street exits suburban Chicago retail turnaround with $76M sale