The sale marks the first time the shopping center has traded hands in about three decades, with seller Deutsche Bank having owned it since 1998. It's not clear what the bank paid for the property then, but it's likely that the bank put a significant amount of money into converting it from an enclosed mall into the open-air shopping center it is today.
The deal expands Core Acquisitions' Chicago-area retail center holdings, which include Rice Lake Square in Wheaton, Woodfield Plaza in Schaumburg and Park Center in Tinley Park.
"This acquisition, in my hometown of Deerfield, represents exactly the type of investment we look for -- a high-performing, well-located retail center in a strong suburban market with durable in-place cash flow and meaningful opportunities to create additional value," Brad Joseph, principal of Core Acquisitions, said in a statement.
Deerbrook Shopping Center's biggest tenants include a Jewel-Osco grocery store, Marshalls, flooring retailer Floor & Decor and trampoline park SkyZone. When the property was marketed for sale, a brochure from Mid-America Real Estate noted that two other large tenants, Hobby Lobby and furniture outlet The Dump, had leases that were set to expire in September.
Joseph told Crain's that Hobby Lobby vacated a few months ago, and bringing a new tenant into that big-box space is Core's "first priority."
"I can't say who it's going to be, but we have some really exciting users interested in that area of the center," he said, noting that while The Dump is still operating, Core has "big plans" for that space as well if they were to leave.
The site also includes a 2.5-acre piece of land along Waukegan Road where a new 25,000-square-foot retail space could be built, which Core plans to market to potential new users immediately, Joseph said.
The property is adjacent to a 254-unit apartment complex that Wisconsin developer Continental Properties is building, which is targeted for completion in early 2026 -- "really good timing" for Core, Joseph said, because of the additional foot traffic to the center the new residents will bring.
Core Acquisitions backed its purchase of the property with a $35 million senior loan from Atlanta-based private equity firm Peachtree Group. The firm plans to put $3 million into renovations including improving the landscaping, parking lots, lighting and signage; Core is also setting aside additional funds to go toward redeveloping spaces for future tenants.
A representative for Deutsche Bank didn't immediately provide a comment on the sale.
Mid-America Real Estate Principals Rick Drogosz and Joe Girardi marketed the Deerbrook Shopping Center for sale.