In The News

Mid-America Real Estate's Urban Team Sees Continued Growth at North & Clybourn with Significant Retail Transactions

For more than a decade, the North Avenue and Clybourn trade area has been one of the most productive and profitable retail trade areas in the City of Chicago, and even now continues to see significant retail transactions, according to Mid-America Real Estate Corporation Urban Team Principal Paul Bryant and Associate Matt Gould. The popularity of this corridor began in the early 1990s with the entry of Whole Foods, Home Depot, Best Buy, Crate & Barrel, Container Store and Cost Plus World Market to name a few. “Even the initial pioneers, like Sam’s Wine & Spirits that once operated out of a small retail space, have now exploded into free-standing flagship buildings and continue to benefit from this vibrant area,” says Mr. Gould.

The growth doesn’t seem to be slowing down. Re-developments that include New City (an 8-acre development featuring over 400,000 square feet of retail space), the former TruServ site (a project anchored by the British School that features over 175,000 square feet of mixed-use space), SoNo, and the former Expo Design Center have infused new life into this already dynamic area, Mr. Gould says. “New arrivals such as REI, which opened a 34,000 square foot store at the TruServ site at Halsted and Blackhawk -- as well as the Grossinger Auto Mall, which signed a 140,000 square foot sublease at the old Expo Design Center-- have brought a new level of excitement into this already established area,” he adds. Both he and Mr. Bryant acted as agents on behalf of both landlords for these two transactions.

With a proven track record of strong sales in the immediate vicinity, Mr. Gould contends that the North Avenue/Clybourn/Halsted corridor both competes with, and complements, Michigan Avenue as a primary trade area for national and boutique retailers penetrating the market.

“Whether it is the night-time draw of the Steppenwolf or Royal George theaters and restaurants or the countless retailers along Halsted and North Avenue, this trade area continues to cater to some of the strongest demographics and consumer spending in Chicago,” he says.

Details of Mid-America’s recent transactions or new projects in this trade area include the following:

NEW CITY: Roundy's Supermarkets Inc. recently signed a lease for 80,000 square feet as the first anchor for New City, a 1-million square-foot urban mixed-use project that plans to open in the summer of 2010. According to Mr. Gould, this store will be a flagship for the Milwaukee-based grocer, which will unveil a new European fresh market design.

The New City development, which is located at Clybourn and Halsted Avenue, will have 420,000 square feet of retail that includes Roundy's, high-end fashion stores, a health club, a theatre and dining, all centered around a one-acre park and plaza. Mid-America is the exclusive leasing representative for New City, in conjunction with Manhattan-based RKF Retail Property Advisors.

FORMER TRUSERV SITE: Also along Halsted and directly across the street from New City, Mid-America is assisting Structured Development on another project anchored by the British School of America, which opened January 2008.

REI recently opened a 34,000 square foot store in October 2008. The entire project at the old TruServ site will consist of 75,000 square feet of medical office space and 100,000 square feet of retail space. Mr. Bryant and Mr. Gould represented the landlord in the REI transaction. Bill Argall of Great Street Realty acted as agent on behalf of REI.

SONO: Just to the southwest of North Avenue and Clybourn is the SoNo 197-unit condominium project that is under construction. Mr. Gould says there will be roughly 6,000 square feet of specialty retail on the ground floor in Phase I, with an opening projected for early 2009. Chicago owner/developer Smithfield Properties recently retained Mid-America as exclusive leasing representative for the retail component.

FORMER EXPO DESIGN CENTER: Mid-America transacted a new sub-lease with Grossinger Auto at the former Expo Design Center located at 1500 North Dayton. Mr. Bryant and Mr. Gould transacted the lease on behalf of the Landlord, while Todd Mintz of Equis represented the tenant. This 450,000 square foot structure will be redeveloped into a distinguished auto complex.

TREND SUMMARY:

Mid-America is witnessing retail growth in the Clybourn Corridor that is migrating south of North Avenue as seen in the TruServ and New City projects. Another prime example of this is the new 80,000 square foot Whole Foods that is relocating and expanding just south of North Avenue along Kingsbury. There will be a total of 600,000 square feet of retail added to this trade area over the next two years.

"This is an exciting time to be working in this area," said Mr. Gould. "The existing residential and retail component along with the opening of REI and the New City project give us a sense that we are going to see something special continue to transpire in this trade area for years to come.” Having assisted in much of the retail activity that developed along North Avenue in addition to working on current projects down to Division Street, Mid-America Real Estate Corporation has maintained its active participation in one of the most significant corridors in Chicago.

Mid-America Real Estate Corporation is a member of Mid-America Real Estate Group, a ChainLinks affiliate. Mid-America Real Estate Group is a full-service retail real estate organization that has become the Midwest’s leader in retail investment sales. For more information, call (630) 954-7300 or visit www.midamericagrp.com.

ChainLinks Media Contact:
Marie Robinson - 800.394.3701 ext. 8970