Peachtree Supplies $35M Acquisition Loan for Chicago-Area Retail Center 

Core Acquisitions has nabbed a $35 million loan to acquire a grocery-anchored shopping center in suburban Chicago, Commercial Observer has learned.

Peachtree Group originated the acquisition loan for Core’s $44 million purchase of the Deerbrook Shopping Center in Deerfield, Ill., from global investment firm DWS. 

Taylor Pike, senior vice president at Peachtree, said the property has strong retail fundamentals with a lease through 2035 with anchor tenant Jewel-Osco, the largest grocer in the Chicago metropolitan area. It has been at the site since 1968. The 428,000-square-foot property also includes Marshalls, Floor & Décor, Panera Bread, Starbucks and Sky Zone.

Pike said the northern area of the property has strong foot traffic from a number of national chains, while the southern portion has vacancy with potential for “value-add” redevelopment. He noted that another draw for the deal was Chicago-based Core Acquisitions’ strong institutional knowledge of the market. 

“They all live here and drive past the center every single day, and we really like the fact that they’re going to be super hands-on,” said Pike of Core. “They’re going to know a bunch of people that go there, and we like that story and that kind of commitment because they’re going to be in there every single day, working it, trying to make it the best that it can be.” 

Deerbook Shopping Center is located at 16 South Waukegan Road, 40 miles north of Downtown Chicago. Pike said the shopping center draws plenty of traffic, with access to Interstate 94 and Metra commuter rail. He also noted new multifamily projects are being developed near the shopping center that will potentially add more foot traffic. 

Core Acquisitions did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.