Draper and Kramer Arranges $99.55M Acquisition Loan for Village Crossing Retail Center in Skokie

CHICAGO — Draper and Kramer, Incorporated's Commercial Finance Group (CFG) has arranged a $99.55 million acquisition loan on behalf of Fairbourne Properties for the purchase of Village Crossing, a 724,400-square-foot grocery-anchored retail center located at 5601–5699 W. Touhy Ave. on the border of Skokie and Niles, Illinois, the firm announced Sept. 14.

The transaction is reported to be the largest Chicago-area retail deal in approximately a decade. The loan was brokered by a CFG team led by Bill Barry and Bill Stewart, both senior vice presidents at Draper and Kramer.

Deal Structure and Financing

Fairbourne Properties acquired Village Crossing for approximately $122 million, or roughly $172 per square foot. The $99.55 million senior loan arranged by Draper and Kramer covers the acquisition and will also fund tenant improvement and leasing commission costs associated with new leasing activity at the property.

The financing drew significant interest from the lending community. "We saw strong competition among lenders to finance the acquisition, even though the size was significant," said Bill Stewart. "In fact, this is reported to be the largest Chicago-area retail deal in the last decade. Retail continues to enjoy strong demand among investors and lenders given the strength of the U.S. consumer and the limited supply of new retail construction, particularly in dense or infill communities."

Nuveen Real Estate was the seller of the asset. Shortly after closing, Harbert Management Corporation acquired an interest in Village Crossing through a joint venture with Fairbourne, which continues to manage the property and retains a partner stake.

Property Overview

Built in 1988, Village Crossing is a multi-tenant, open-air shopping center comprising approximately 69 commercial spaces. The property is approximately 95% leased and draws an estimated 6.8 million visits annually, anchoring retail activity at the intersection of Skokie, Niles, and Chicago.

The tenant roster includes Jewel-Osco as the grocery anchor, along with AMC Theatres, Dick's Sporting Goods, Best Buy, Barnes & Noble, Ulta Beauty, PetSmart, Michaels, OfficeMax, and Altitude Trampoline Park, among others. Burlington and Marshalls are also noted as incoming tenants, supporting forward leasing activity at the center.

Fairbourne's Investment Strategy

Laura Faber, senior manager at Fairbourne Properties, said the acquisition fits squarely within the firm's investment approach. "This is a property that aligns closely with Fairbourne's investment strategy of acquiring high-quality, dominant assets in markets where retailers want to be," Faber said. "The property benefits from an exceptional location, a broad regional draw and a compelling tenant lineup that has established Village Crossing as a premier retail destination within the trade area."

Faber added that Fairbourne intends to deploy meaningful capital into the property following the acquisition. "As the new ownership group, Fairbourne intends to make a meaningful capital investment in Village Crossing, addressing deferred maintenance while enhancing the property's overall appearance and customer experience," she said.

Market Context

The transaction reflects continued investor and lender appetite for stabilized, grocery-anchored retail in supply-constrained markets. Bill Stewart noted that limited new retail construction — particularly in dense, infill communities — has contributed to strong demand for well-positioned existing assets. Village Crossing's mix of necessity-based, experiential, and off-price tenants, combined with its high occupancy and regional trade area, positions it as an asset with upside through leasing, rent growth, and planned capital improvements.

Draper and Kramer's Commercial Finance Group has sourced commercial real estate debt and equity for more than 125 years and maintains relationships with more than 25 life insurance companies. The Chicago-based firm provides financing solutions across the capital stack for third-party clients and its own investments.

About the Firms

Founded in 1893, Draper and Kramer, Incorporated, is a family-owned, full-service real estate firm headquartered in Chicago with expertise spanning residential and commercial development, acquisition, property management and leasing, and debt and equity financing for commercial properties.

Fairbourne Properties is a Chicago-based retail real estate investor focused on acquiring dominant retail assets in established markets.

Sources: Draper and Kramer