BARRINGTON, IL, Dec. 15….GK Development, Inc., a Chicago real estate acquisition and development company specializing in retail properties, has acquired Peru Mall in Peru, Illinois.
The acquisition of the 465,672-square-foot mall marks the sixth regional shopping center acquired by the firm in the past 18 months. The property is located at 38th Street and Illinois 251, just a quarter mile south of I-80 in northwest Peru.
“Given our experience in the development, leasing and management of retail properties, we see an outstanding opportunity in Peru Mall to add value to an already strong property. The Illinois Valley’s steady growth and diversified economy were key factors in our decision,” said Garo Kholamian, president of GK Development.
“This transaction fits our strategy for acquiring properties where we can be a leading player,“ Kholamian added. “Peru Mall is the dominant regional mall within a 55- mile area, providing a shopping venue for nearly 150,000 consumers. We expect to retain that position.”
The Illinois Valley, encompassing Bureau, LaSalle, Marshall and Putnam counties, is experiencing steady economic and population growth, fueled by the creation of several major warehouse/distribution centers and corresponding residential growth. Two interstate highways, I-80 and I-39, serve the area, providing easy access to the region and shopping destinations.
Peru Mall is located at the center of the area’s major retail growth corridor along Illinois 251, creating a strong retail trade area.
“Using our experience, we’ll analyze all opportunities for their potential to enhance the shopping experience at Peru Mall. In an effort to strengthen the mall’s position, we will look at adding new retailers and exciting amenities to the existing mix,” said Kholamian.
The regional shopping center, which opened in 1974, boasts three major department stores and 68 specialty stores located on a single level. Major tenants are Bergner’s, JC Penney and Sears. Marshall’s recently opened a 28,000-square-foot store on the mall’s east side. The mall also has an eight-screen theater, Peru Mall Cinema.
The company has retained the property’s management staff, who will become employees of GK Development.
The sellers were L&H Real Estate Group of Chicago and Peru Mall Associates LLC, whose managing member and majority investor is Enterprise Asset Management of New York. George Good, Rich Frolik and Bob Mahoney of CB Richard Ellis’ Shopping Center Investment Team represented the selling group.
The Chicago office of KeyBank Real Estate Capital provided financing for the $30.8 million transaction.
Copyright 2008 GK Development, Inc.