A Chicago investment firm made a profit of almost $16 million from the sale of a Naperville shopping center it bought during the pandemic.
Northpond Partners sold the 115,000-square-foot Naperville Plaza to Jacksonville-based REIT, Regency Centers for more than $52.4 million, Crain’s reported. Northond paid $36.5 million for the property in December 2020.
Regency said it paid the higher price, which represented a 44 percent increase in value over only 16 months, because of the property’s prospects.
“Naperville Plaza is an ideal Regency acquisition due to its tenant mix, high barriers to entry, and connection with the local community,” Nick Koglin, a Regency vice president, said in a statement.
The shopping center has survived the pandemic, mainly due to its tenants, which offer products people are more likely to buy in stores than online. Two grocery stores, Casey’s Foods and Trader Joe’s occupy almost 41,000 square feet between the two. A pharmacy, Firestone auto shop and Sherwin Williams paint store also have leases in the center along with other smaller tenants.
Shopping centers with stores that focus on apparel or other goods people like to buy online have had a harder time staying afloat. Centers like Naperville Plaza that have a grocery store anchor have had a slightly easier time holding up. Naperville Plaza is about 96 percent leased.
The property’s value increased mainly due to the investment market and not so much because of any major improvements carried out by Northpond.
Northpond has also invested in the Shops on Elm Place, Glenbrook Marketplace, a Highland Park shopping center, a Glenview shopping center and the former Lawry’s steakhouse in River North.
With the latest sale, Regency now owns 11 shopping centers across the Chicago area, including Clybourn Commons on Chicago’s Near North Side, Mellody Farm in Vernon Hills and Westchester Commons.
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