NEW YORK--(BUSINESS WIRE)--In July 2016, Besyata Investment Group, a NY-based single family office, in a joint venture with its partner, ALTO Real Estate Funds, has acquired Washington Park Plaza for a purchase price of $32 million. The 235,000 square-foot community center located in a south suburb of Chicago is a stabilized retail investment property, leased to national tenants in the prime retail corridor of Homewood, IL. Mid-America Asset Management, an experienced manager of 55 million square feet of Midwest shopping centers, will oversee the day-to-day property management and leasing.
Besyata believes that in the current volatile economic climate, investing in value-add real estate transactions is not only a risk averse solution, but also a prime opportunity to generate positive alpha. Guided by its investment principles, Besyata has originated 5 retail deals in the last 6 months.
Washington Park Plaza
The center is 95% leased and includes a deep line-up of national credit tenants such as Ross, TJ Maxx, Best Buy, Jo-Ann Fabric and Petco, as well as Famous Footwear, Dressbarn, Lane Bryant, AT&T, Great Clips, Chili's, FedEx Office and Starbucks. The Plaza is comprised of seven buildings and is located on Halsted Street, less than one mile south of its interchange with I-80 / I-294. Halsted Street is a primary north-south thoroughfare and serves as the main retail corridor for Homewood and the surrounding communities. Other tenants in this corridor include Kohl’s, Menards, Target, Walmart Super Center, Jewel-Osco, OfficeMax and Home Depot.
The Chicago MSA offers an attractive retail market, generating more than $120.1 billion in annual retail sales in 20151. While online sales have been increasing, 93% of total retail spending still takes place in stores2, where consumers prefer a one-stop shopping trip for everyday staples, discretionary goods and services.3 In Chicago, households spend 62% of their food dollars on food prepared at home2, a majority of which is purchased in stores. Consequently, in selecting retail acquisitions, Besyata looks for a strong grocery-anchored tenant base, stable tenant credit quality, and favorable market trends.
Homewood is a well-established suburb with strong fundamentals, such as high employment, low crime rate, and high population density. Chicago MSA is the third largest contributor to the US GDP, only preceded by New York and Los Angeles. 2016 retail property sales in Chicago area were $1.8 billion, a 55% annual increase and the highest growth by property type.4 Chicago MSA has a diversified economic base and is home to more than 400 major corporate headquarters, including 31 Fortune 500 companies5. The market’s central geographic location, diversified economy and highly educated labor pool have enabled Chicago to achieve a prominent position as a world-class city in finance, international trade, manufacturing, transportation, and culture.6
Besyata Investment Group is a single family office, focused on acquiring multi-family and retail real estate properties with substantial upside, while pursuing a value-add strategy. Besyata is an owner and operator of properties nationwide, totaling over $500 million, and has originated and financed over 100 successful transactions. Through an innovative investment approach, rigorous due diligence and asset management, Besyata has achieved strong performance and consistent results over 20 years across various market cycles.
ALTO Real Estate Funds, founded in 2010, is a series of closed-end investment funds specializing in value-add/commercial real estate investments throughout the United States. To date ALTO has invested $1 billion in 53 assets, consisting of approximately 11 million square feet, and has sold its interest in 14 properties.