Australian retail giant Westfield Group will pay $108 million for theRidge shopping center in Chicago. Sears, Kohl’s, and Carson Pirie Scott anchor the 856,000 sq. ft. shopping mall.
Back in 1999, a Shopco Advisory Corporation-led joint venture bought the property for $91 million. The property placed on the market in November 2003.
"Chicago Ridge provides an excellent geographic fit with our Chicago cluster, and offers both short and long-term redevelopment opportunities," said Peter Lowy, managing director of Westfield, in a written statement.
Westfield will re-name the shopping center Westfield Shoppingtown Chicago Ridge once theis closed. According to Westfield, The capitalization rate—or initial yield—on the property translates into 8%.
This purchase will bring Westfield’s greater Chicago portfolio up to 7 regional centers. The firm owns 67 regional shopping centers in the U.S. Westfield, with a market cap of roughly $30 billion (US), is one of the largest retail property owners in the world.