Posts Tagged ‘New Lenox’

Update on New Lenox shopping development

February 1, 2008

A January 22 article in GlobeSt.com has an update of McVickers Development‘s plans for a shopping center in New Lenox, Illinois. The 71-acre parcel along the Lincoln Highway was reportedly acquired for $18.9 million from a private individual; it had been on the market for 5 years. McVickers will oversee development of 450,000 sq ft of retail anchored by a Menards and Wal-Mart Supercenter, who will purchase their land. GlobeSt points readers to a map on McVickers site, seen below on a screen shot, for other tenants, which include PetCo, Staples, Aldi, Starbucks, Verizon, Fifth/Third Bank, Arby’s, Dunkin Donuts, and Auto Zone.

IL_New Lenox stores

A McVickers spokesman said that being at the end of the new extension of I-355 makes it “prime real estate on the main drag running through New Lenox,” with 20,000 cars daily on this part of the Lincoln Highway. As for why it was on the market so long, he said there are “some low-grade wetlands on the property that are going to be mitigated.”

A 2006 release on a similar project said McVickers Development is developing “over two million square feet of retail shopping center space throughout the Chicago Metropolitan area.” The same release said that Wal-Mart had “45,308 associates living and working in Illinois at its 77 Discount Stores, 57 Supercenters, 28 SAM’S Clubs, and four distribution centers.”

Wal-Mart bringing change to LH south of Chicago

December 28, 2007

A story in the Southtown Star of suburban Chicago, Illinois, reports that the Lincoln Highway through New Lenox south of Chicago, will be remade over the next 18 months:

“This is the biggest news of the year. This is incredibly good news. This is the big one we have all been waiting for,” New Lenox Mayor Tim Baldermann said….

Upgrades include left-turn lanes at cross streets from Marley Road to Joliet Highway and in front of Lincoln-Way Central High School, plus temporary signals at Marley and new signals at Schoolhouse Road. [See Google Maps aerial view below.]

IL_NewLenAerial

The work, which will greatly alter the Lincoln Highway roadscape, is in preparation for a Wal-Mart plaza across from Cooper Rd/Roberts Rd/Williams St. It looks like the development will fill one of the last large pieces of land along the LH there: note the house and surrounding fields on the north side of the road.

Oddly, this is just preliminary until permanent upgrades can be done:

All work is compatible with IDOT’s ultimate $80 million plan to make Lincoln Highway a fully improved five-lane road. Money for that massive construction project is not included in any budget at this time, said New Lenox village administrator Russ Loebe.

But these interim improvements “should buy the community quite a few years of smooth cruising” on Lincoln Highway, he said.

An insightful article also was published in Chicago Business News about the real estate deal. McVickers Development bought 73.5 acres from two sellers for a combined price of $18.9 million, then will sell it to Wal-Mart, Menards home improvements, Petco, Staples, Aldi, and other retailers. McVickers will likely lose money on the sale to Wal-Mart:

Typically, an anchor tenant such as Wal-Mart demands better financial terms because the company knows the developer can make it up by charging higher rents to the smaller tenants.

“In general, developers almost never, ever make money on the big boxes, and very often they lose money,” says Matthew Silvers, a principal in the Midwest brokerage arm of Northbrook-based Next Realty LLC, who represented McVickers in the acquisition.

Mr. Silvers says major retailers like Wal-Mart dictate how much they are willing to pay for land based on their forecast of a store’s profitability.

“They’ve got their own economic analysis, and that’s just going to be what they can pay for the land, and the developers have to deal with it,” Mr. Silvers says.