The Deer Grove Centre — a 236,000-square-foot shopping center in Palatine — was sold Wednesday to Ramco-Gershenson Properties Trust, which is based in Michigan, for $20 million in cash.
The multi-anchored shopping center, which is located on Dundee Road at the RandRoad/Route 12 interchange, includes Petco, Dress Barn, Staples and a Dominick's supermarket with a 51,000-square-foot TJ Maxx/Home Goods expected to open this fall. The shopping center is 81 percent leased, according to a Globe Newswire news release.
The company is in "negotiations with a number of national retailers to strengthen the center's tenant mix and increase occupancy," according to the press release. Ramco-Gershenson Properties Trust also recently purchased the Mount Prospect Plaza in Mount Prospect.
The proximity of the two shopping centers could help the company "leverage national and regional retailers' desire to be in both locations to strategically meet their expansion plans while effectively capturing the buying power of the entire market," according to the news release.
"Deer Grove is a solid, value-add acquisition that supports our strategy of purchasing high-quality properties that we can immediately improve by executing leases to fill existing vacancies and by renovating spaces occupied by underperforming uses," said Dennis Gershenson, President and Chief Executive Officer, in the news release.
"Our current acquisition philosophy of acquiring market-dominant centers with a superior demographic profile that have upside potential will supplement long-term growth in net operating income," he said.