Southgate Market

CBRE is pleased to offer Southgate Market, the dominant 303,810-square-foot grocery-anchored shopping center in Chicago’s South Loop neighborhood.​ Southgate Market is anchored by Whole Foods, one of the most desired grocers by both consumers and investors.​ Whole Foods has a long history of success at this location and recently executed a 10-year early extension demonstrating its long-term commitment to this location with 14 years of term remaining.​ The grocer is complemented by a premier, high-quality tenant lineup of national retailers including LA Fitness, Marshall’s, PetSmart, DSW, and University of Chicago Medicine.​ At 78.8% occupied, investors are offered a value-add opportunity by acquiring a high-performing grocery-anchored asset with stable cash flows as a result of the high-quality tenant lineup and an irreplaceable urban location in Chicago’s fastest-growing neighborhood.​

• ​

  Dominant Grocer Anchor — Whole foods: Southgate Market is anchored by Whole Foods, one of the most desired grocers by both consumers and investors. Whole Foods’ 18-year presence at the Property and its recent 10-year early extension speak to the anchor’s long-term commitment to the shopping center. 

• ​

  Backed by Strong Performing National Anchor Tenants: Southgate Market is home to LA Fitness, Marshalls, PetSmart, DSW, and University of Chicago Medicine, all of which have either extended their lease term or report strong sales at this location, showing a strong commitment to the site and trade area. 

• ​

  Potential Value-Add Opportunities: As shown by the 5-year NOI CAGR of 13.4%, Southgate Market features seven vacant units totaling nearly 65,000 SF allowing future ownership to increase rental revenue by $1.4M.

• ​

  South Loop Retail Corridor — Must Have Location: Southgate Market is the most visible shopping center in the dominant South Loop and Roosevelt Road retail corridor. The South Loop has emerged as one of the most rapidly developing submarkets as there are numerous major projects and redevelopments in process that will further transform the area drawing new residents and consumers to the area.

• ​

  Dense Urban Infill with Robust Demographics & Convenient Access:  Southgate Market is located in the densely populated, urban South Loop area with robust demographics including an enormous daytime population surge. Within a two and three-mile radius, there are 219,188 and 395,956 residents with strong average household incomes of $165,245 and $158,625 respectively.

• ​

  Strong Tenant Retention: Over the past two years, Southgate Marketplace has seen strong leasing demand from existing retailers. Eight tenants occupying 210,107 square feet have renewed over the last two years bringing the Property’s WALT to a healthy 8.42 years. Further, 11 of the current tenants making up 70% of the GLA have performed at the shopping center since 2010, showing the Property’s ability to attract and retain top tier tenants.

• ​

  Abundant Parking with Opportunity to Increase Revenue: To take advantage of the enclosed parking structure at Southgate Market, investors have the opportunity to switch to a potentially higher revenue-producing parking system. 

• ​

  Significant Capital Improvements: Over the past four years, current ownership has spent nearly $6.5M on capital improvements to the interior spaces, signage, landscaping, façade, and parking areas that required unanimous tenant support. Rather than resolving deferred maintenance, future ownership will be able to focus their time and energy on implementing a leasing strategy and further drive NOI.