search

The Real Deal Logo

Trending

Mohamed Hadid files for bankruptcy on Beverly Hills lot, owing $55M to creditorsMohamed Hadid files for bankruptcy on Beverly Hills lot, owing $55M to creditorsSouth Florida developer Tibor Hollo dies at 96South Florida developer Tibor Hollo dies at 96Whole new world: How NYC values 421a, 485x sites nowWhole new world: How NYC values 421a, 485x sites nowShort-term rental-friendly projects now represent half of South Florida’s new condo pipelineShort-term rental-friendly projects now represent half of South Florida’s new condo pipeline
Commercial
Chicago

Bloomingdale to settle lawsuit, take control of Stratford Square Mall

Village to purchase mall portions it doesn’t already own for $8.75 million

Bloomingdale Mall to Take Full Ownership of Stratford Square Mall
Bloomingdale president Franco Coladipietro and Stratford Square Mall (Getty, Google Maps, LinkedIn/Franco Coladipietro)

All the pieces of the puzzle have fallen into place for Bloomingdale to take full control of the Stratford Square Mall. 

Village officials have reached an agreement to settle a condemnation lawsuit against Namdar Realty Group, which owns the interior portion of the mall and the vacant JCPenney store, by purchasing the remaining portions of the mall for $8.75 million, the Daily Herald reported. 

Village trustees unanimously approved the resolution, and the deal is expected to be finalized next week. 

“I think relative to the amount of land that we have acquired and the cost, it is an amazing start to a new rebirth at Stratford Square Mall,” Village president Franco Coladipietro told the outlet. 

Bloomingdale has been gradually acquiring portions of the mall, with plans to redevelop the 275-acre site. However, a prolonged legal battle with Namdar, which involved the attempted use of eminent domain, has been a roadblock in the village’s years-long goal of acquiring the mall.

Bloomingdale tried to collaborate with Namdar, but when negotiations faltered, the village chose to spearhead the mall’s redevelopment independently. The acquisition strategy involved buying former department store buildings and adjacent spaces, including properties like Carson”s, Burlington, Sears and the property known as “the canoe” on Springfield Drive, amounting to an investment over $5.6 million. 

Sign Up for the undefined Newsletter

Bloomingdale’s vision for Stratford Square Mall involves transforming it into a vibrant community hub with green spaces, restaurants and entertainment or recreational facilities.

Read more

Mall redevelopments have become increasingly common in Chicagoland. The pandemic triggered a spike in e-commerce, reducing foot traffic and prompting landlords to repurpose their struggling retail assets. 

Akin to Bloomingdale, the village of West Dundee is buying the Spring Hill Mall, with hopes of turning it into a mix of housing, entertainment and retail. 

French developer URW is undergoing a $100 million plan to revitalize the Westfield Old Orchard mall in Skokie with about 350 apartments, a town square and medical space. And in the western suburb of Aurora, a venture of Centennial, Focus and Atlantic Residential is replacing vacant storefronts at the Fox Valley Mall with luxury apartments and senior housing.

—Quinn Donoghue  

Companies and People
Namdar Realty GroupFranco Coladipietro
Tags
AcquisitionMallSuburbs