Harbert Management Corporation and Fairbourne Properties Acquire 722,466-SF Village Crossing Power Center Near Chicago for $122 Million

BIRMINGHAM, Ala. — Harbert Management Corporation has acquired Village Crossing, a 722,466-square-foot grocery-anchored power center situated at the intersection of Skokie, Niles, and Chicago, Illinois, the Birmingham-based alternative asset manager announced Sept. 9, 2026. Fairbourne Properties is serving as joint venture partner and will continue to manage the property.

The transaction values Village Crossing at approximately $122 million, or roughly $174 per square foot. The center, located at 5507 W. Touhy Avenue in Skokie, is approximately 95% leased and draws about 6.8 million visits annually.

A Dominant Suburban Retail Asset

Village Crossing functions as the primary retail destination for a dense, affluent trade area approximately 15 miles north of downtown Chicago. Its tenant roster includes Jewel-Osco, Best Buy, Dick's Sporting Goods, AMC Theatres, Barnes & Noble, PetSmart, Ulta, and Michaels, along with Altitude Trampoline Park, OfficeMax, Chuck E. Cheese's, Five Below, Burlington, and Marshalls, among other national chains. Several anchors have recently executed long-term lease renewals and made material capital investments in their spaces, reinforcing the center's occupancy stability.

Individual anchor footprints at the property include AMC Theatres at 86,198 square feet, Dick's Sporting Goods at 50,176 square feet, Best Buy at 48,373 square feet, Barnes & Noble at 21,223 square feet, Michaels at 31,810 square feet, and PetSmart at 20,000 square feet.

Deal Structure and Pricing Context

The transaction reflects a recapitalization structure in which Fairbourne Properties sourced and closed the acquisition of Village Crossing from Nuveen Real Estate in late August 2026, then brought in Harbert Management Corporation as an institutional capital partner through a joint venture. Fairbourne retained its operating role and a partner interest in the asset. The $122 million price represents one of the larger Chicago-area retail transactions in recent years.

Harbert Management Corporation, known internally as HMC, manages approximately $7.8 billion in Regulatory Assets Under Management as of Aug. 31, 2026. Formed in 1993, the firm is privately owned and serves institutional investors across multiple asset classes, including seniors housing, European and U.S. real estate, power, growth capital, and credit solutions.

Value-Add Business Plan

HMC's acquisition of Village Crossing is consistent with its stated retail strategy of targeting regionally dominant retail centers with value-creation potential. The firm's business plan for the property includes leasing existing vacancy with an emphasis on small-shop retailers and restaurants aligned with local community preferences. Physical improvements will encompass façade and roof upgrades, architectural enhancements, lighting, wayfinding, tenant signage, landscaping, and sidewalk modernization.

"This transaction highlights our conviction in retail centers that anchor their surrounding trade area and carry strong value-creation potential," said Todd Jordan, Managing Director, U.S. Real Estate at HMC. "We're excited to partner with Fairbourne Properties and bring in tenants that further elevate the shopping experience for Village Crossing's surrounding community."

Market Context

The Village Crossing acquisition comes as institutional capital has been selectively returning to well-located, grocery-anchored retail centers. The property's high occupancy rate, entrenched national tenancy, and annual visitation of approximately 6.8 million position it among the more actively trafficked suburban retail assets in the Chicago metropolitan area. The $174-per-square-foot pricing reflects current market appetite for stabilized, grocery-anchored power centers in dense suburban corridors.

Fairbourne Properties, which will continue day-to-day management of Village Crossing, has an established presence in the Chicago-area retail market. The joint venture structure keeps operational continuity in place while providing HMC with direct exposure to one of the region's larger retail assets.

Sources

• Harbert Management Corporation — Official Announcement, Sept. 9, 2026