Clarion Partners has sold a mixed-use property in downtown Naperville for a significant loss compared to previous transactions.
Chicago-based real estate firm Bucksbaum Properties has purchased the River District Shopping Center at 22 East Chicago Avenue for $22 million, a loss of more than $7 million compared to the price Clarion paid for the property in 2019, CoStar reported.
The property is approximately 59,000 square feet and is home to tenants including Chipotle, Five Guys and Rosebud, as well as 12,000 square feet of office space on the second floor, making it a major commercial hub in the heart of Naperville’s historic downtown area.
Northbrook-based Clarion Partners bought the shopping center from Sabath El for $29.3 million in 2019, banking on rising demand and rental income in Naperville’s vibrant downtown district. At the time, rents at the property were rising and property values were increasing as many tenants renewed their leases at higher rents.
However, broader challenges facing the Chicago-area retail market and rising vacancy rates have taken a toll on the asset’s profitability.
Led by founder John Bucksbaum, Bucksbaum Properties plans to leverage its development and property management expertise to realize the River District’s full potential.
Chicagoland retail has recovered slower than other Sunbelt markets since the pandemic. Downtown Chicago has been particularly hard hit, with retailers pulling out of the Magnificent Mile and some landlords struggling. Even New York resident Ben Ashkenazi, known for fighting to protect his assets, recently sold his Magnificent Mile retail holdings in a transfer-in-lieu of foreclosure after a $61 million default.
Also in the Loop, a retail center anchored by a TJ-Maxx at 1 North State Street is facing foreclosure auction after its landlord, New York-based investor Isaac Shalom, defaulted on a $60 million loan.
Andrew Terrell
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