DLC Management, Rialto Capital List Suburban Chicago Retail

Another massive suburban retail property is up for grabs as investors warm up to the sector after a long freeze.

DLC Management and Rialto Capital tapped Newmark to market Randhurst Village, the nearly one million–square-foot shopping center in Mount Prospect, northwest of Chicago. The brokers expect the property to fetch $100 million, according to Newmark — a price that would make it one of the largest retail trades in the Chicago area in years, Crain’s reported.

The listing follows last month’s $100 million sale of Algonquin Commons to Nuveen.

Retail deals of $100 million or more nationwide more than doubled in the first half of the year to 17 from eight a year earlier, MSCI Real Assets data show.

Randhurst Village sits at Rand and Elmhurst roads, at 1 Randhurst Village Drive, and is 92 percent leased, excluding a vacant former Carson Pirie Scott department store. The property has a weighted average lease term of 7.4 years, meaning cash flow is relatively steady.

Major tenants include Costco, Jewel-Osco, Home Depot, Macy’s, HomeGoods, T.J. Maxx, PetSmart, AMC Theatres, and fitness operators Orangetheory and Planet Fitness. A 140-key hotel on the site is separately owned and not part of the sale.

Newmark’s Keely Polczynski described it as a “dual grocery–anchored power center in one of Chicago’s most affluent suburban trade areas.”

Retail could become an increasingly safe bet in Mount Prospect, where six multifamily developments have opened in the past five years, adding nearly 600 units downtown, The Real Deal previously reported.

Originally developed as an enclosed mall in the 1960s, Randhurst was redeveloped in the early 2010s into an open-air shopping center through a $200 million overhaul.

DLC, based in Elmsford, New York, and Miami-based Rialto bought the property for $100.5 million in 2015, according to public records. A sale at a similar price a decade later underscores the balancing act in retail real estate: transaction activity is rising again, but valuations haven’t yet caught up to pre-rate-hike highs.

DLC owns about 90 shopping centers nationwide, including several in the Chicago suburbs such as Coral Plaza in Oak Lawn, the Oaks of Oak Brook and Danada Square West in Wheaton, per CoStar.

— Eric Weilbacher