Continental is expanding its business in a sector that is holding up amid the challenges posed by the rise of e-commerce and the arrival of the COVID-19 pandemic more than two years ago. The Chicago property has a large collection of retailers selling essentials, a healthy segment of the retail market. Grocery stores and drugstores make up about 39% of the portfolio, according to Continental.
“The acquisition of our suburban Chicago grocery-focused retail portfolio is well aligned with our overall investment theme and features a strong line-up of grocery, drugstore and essentials-based users. This is an opportunity to own and operate an institutional-quality real estate portfolio with strong value-add potential,” said Josh Dinstein, senior vice president of Continental, in a statement.
Continental has acquired:
- Cicero Marketplace, a 392,000-square-foot facility at 3027 S. Cicero Avenue in Cicero, backed by Home Depot, Sam’s Club, Target, and Food 4less.
- Northwest Shopping Center, a 101,000 square foot shopping center attached to Jewel Osco at 425-569 E. Dundee Road, Palatine.
- The Golf Plaza II Shopping Center is a 145,000 square foot facility backed by Walgreens and KD Market located at 1000-1080 S. Elmhurst Road, Mount Prospect.
- Fox River Commons is a 241,000-square-foot shopping center at 808 S on State Route 59 in Naperville, with tenants including the International Fresh Market and Outback Steakhouse.
- English Valley Shopping Center is a 24,000 square foot free-standing strip center located at 237-285 W. Dundee Road in Palatine.
Continental CEO JM Schapiro said in a statement: “We will target the categories of restaurants, soft goods, entertainment and healthcare to fill existing vacancies and create long-term value and enhanced energy for the center and surrounding areas.” We plan to fill it with users who bring “We believe there is demand for retail space in each of these respective submarkets and plan to leverage our strong broker-tenant relationships to significantly enhance the tenant mix across our portfolio.”
Continental owns a total of approximately 7 million square feet of shopping centers and approximately 9,000 apartments in the Southeast and Mid-Atlantic states, Texas, Michigan and now Illinois.