Brookwood flips Northland Mall, makes $8.3 million on the sale

STERLING – As promised, a Tennessee-based commercial real estate developer flipped Northland Mall – selling it for about $8.3 million more than it paid for it eight months ago.

According to Whiteside County records, Sterling Investments LLC bought the site last week for $10,080,000.

More information on the buyer was unavailable Monday.

The vintage-1973 mall at 2900 E. Lincolnway was at 30% capacity when Brookwood Capital Advisors bought it in late January for $1.7 million.

Four months later, thanks to Brookwood’s model of providing six months’ free rent, 100% of the spaces either were or were set to be filled, with signed, ironclad leases in hand.

The new locally owned businesses include boutiques, an arcade, a toy store, a coffee bar, clothing stores, and a vintage resale shop.

National retailers Hobby Lobby signed a 10-year lease and is set to open in January in the former Bergner’s space on the west end, and Indiana-based Midwest Furniture recently opened Illinois Furniture and More in the former JCPenney east-end anchor location.

Ross Dress for Less, T.J. Maxx and Big Lots also signed nonbinding letters of intent to join the mall lineup, Brookwood founder Ben Hamd said in May. Famous Footwear, which always locates with a T.J. Maxx, would come, too.

If the new owners sign with those retailers, Space for Midwest Furniture would be split, and they would move there, Hamd said.

The new businesses join several established national retailers, among them Dunham’s Sports, Planet Fitness, Bath & Body Works, Claire’s, and Maurice’s, the lease payments from which made the free six months offer possible.

With Northland, Brookwood fulfilled its mission: The investment company buys closed or flagging shopping centers, revives them then sells them.

In addition to signing new tenants, Brookwood installed new HVAC units installed and redid the asphalt parking lot during its short tenure.

Northland went up for auction in mid-June; the starting bid was $1.5 million. Its net operating income is $1.42 million a year, Brookwood said.