Red Mountain Group is looking to offload the formerly troubled shopping center it brought back to life in Geneva.
The California-based investment firm, led by CEO Michael Mugel, is seeking a buyer for the Algonquin Commons, a renovated shopping center spanning 542,100 square feet at 1900 South Randall Road, Crain’s reported. Newmark’s Bill Bauman, Kyle Miller and Conor Lalor are marketing the property.
The outdoor shopping mall started on a tumultuous journey when it opened in 2004. After the Great Recession, the previous owner defaulted on $110 million in debt, leading to foreclosure.
Red Mountain purchased the property three years ago for $33 million in a lender-controlled sale, setting the stage for an ambitious $30 million redevelopment, which added a covered gathering area.
The investment has paid off. Foot traffic surged by over 33 percent, and occupancy rose from about 75 percent to 90 percent.
The center is anchored by grocery giants Trader Joe’s and Fresh Market, plus Barnes & Noble, Dick’s Sporting Goods, Bob’s Furniture, Nordstrom Rack, Ross and DSW.
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Red Mountain listed the property on the heels of Site Centers’ sale of the Woodfield Village Green for over $93 million in August — the priciest retail property transaction in the Chicago area in more than two years.
While Red Mountain has not commented on the listing. The firm specializes in retail redevelopment and has been involved in the development and redevelopment of $4.5 billion worth of retail and mixed-use real estate since its inception in 1991.
— Andrew Terrell