A shopping center in Lincoln Park is up for grabs following a revamp that brought in long-term tenants.
Novak Development wants to cash out on its investment in the 136,000-square-foot Webster Place, a health care and retail center at 1435-1471 West Webster Avenue in Chicago’s Clybourn Corridor, Crain’s reported. CBRE’s Michael Wilson, Michael Kaider, Christian Williams and George Good have the listing.
The Chicago firm, headed by founding partner Jeff Novak, acquired the property in 2022 for about $30 million, or $220 per square foot. That was roughly half its previous sale price fewer than five years earlier. It was less than 70 percent leased and facing departures from Barnes & Noble and Moosejaw at the time of purchase.
Novak, primarily known as a general contractor, has taken on similar retail redevelopments, including former Sears locations in Portage Park and Galewood.
The Lincoln Park property is close to fully occupied, positioning it to sell for about $80 million, the outlet reported. That would break down to just under $590 per square foot.
Healthcare company Advocate Health constructed a $79 million, 76,000-square-foot outpatient facility at Webster Place, set to open this quarter.
Medical office space in retail centers often attracts investors due to its in-person service model, which supports foot traffic and revenue. Advocate Health has committed to a 10-year lease. Other tenants include Chase Bank and Regal Cinemas, which recently renewed their leases.
Shopping centers have become an increasingly attractive asset for investors. Last month, a joint venture between DLC Management, Crow Capital Holdings and Temerity Strategic Partners bought the Danada Square West in Wheaton from PGIM for $61.7 million, or $196 per square foot.
Meanwhile, a 420,000-square-foot shopping plaza in Woodfield Village traded hands for $93 million, placing it among the top 10 priciest commercial transactions in Cook County last year.
— Andrew Terrell
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