March 1, 2019
Ford City Mall, which Sam Zell turned over to lender iStar Financial in 2012 after a 25-year hold, is up for sale. The New York City-based lender has hired JLL to market the 960,000-square-foot Southwest Side property, which has lost all but one of its department-store anchors.
Built more than 50 years ago on the site of a former aircraft engine factory, Ford City was one of Chicago’s first regional malls. “It’s got strong demographics, lots of density, but like most malls, it’s going to have to evolve,” John Melaniphy III, president of consulting firm Melaniphy & Associates, told Crain’s Chicago Business.
Citing data compiled by Green Street Advisors, Crain’s reported that the price index for malls has dropped nearly 20% from its January 2017 peak, with values of Class B malls like Ford City dropping 31%. Values in most other commercial property sectors have risen over the same period.
For comments, questions or concerns, please contact Paul Bubny