KANKAKEE — The New York investment company which recently purchased the Shoppes at Meadowview wants to make three things clear to area residents.
Owners of First Choice Investments LLC, Yuki Smouha and Brendan Petri of New York, N.Y., stated:
1. They have no intention of “flipping” the shopping complex in an effort to make some quick cash.
2. They believe previous ownership completed necessary improvements and moved the complex forward.
3. They have their eyes firmly set on not only renovations, but adding new structures as well.
In mid-summer, First Choice purchased the nearly 32-acre shopping complex along North Kennedy Drive and North Fifth Avenue for $5.2 million, according to documents from the Kankakee County Recorder of Deeds.
The company purchased the property from the joint ownership group of Frontline Real Estate Partners of Northbrook and Terraco, Inc., of Wilmette. The two suburban groups had owned the property, which they acquired for $3 million, since early 2012.
Frontline and Terraco donated portions of the property to other organizations, leaving only 139,112 square feet of space. About 70 percent of it is leased.
The property is technically under the ownership of 1200-1250 North Kennedy Avenue, LLC, an offshoot of First Choice.
Both Smouha and Brendan stressed they are not seeking to “flip” the property, meaning sell it quickly for a profit. Instead, the company is seeking long-term ownership and already have plans of investing $1 million in upgrades.
“We are buying an asset we believe in,” Smouha said. “And we are buying this as a long-term investment. We like what we have seen in the area. We believe in this long term, through and through.”
Once the region’s home for retail heavyweights Sears, JCPenney, Woolworths, Eagle Country Market and many others, the location was opened in 1955 and has struggled since 1990.
Barbi Brewer-Watson, Kankakee’s Economic & Community Development Agency executive director, said the owners have already started seeking building permits for property maintenance and modernization.
“We are really excited about this. This is a sign of Kankakee growth,” she said.
Brendan said some feelers have been sent out regarding potential tenants, but they prefer to wait until certain properties are renovated before bringing in prospective tenants.
“We are looking to provide some great outlets for people to enjoy,” he said.
They envision new, free-standing structures to house retail or restaurants. One common suggestion heard repeatedly regarding Meadowview is why can’t it attract a business such as a coffee shop, particularly Starbucks. The new owners said they will make a run at Starbucks when the time is right.
Once the premier retail location within Kankakee County, the location became more of a neighborhood-type complex once Northfield Square Mall was opened.
Once owned by GE Capital, the shopping center was purchased by the Terraco-Frontline partnership. The group made significant investments. During its tenure, the location lost a major retailer when the Ultra Foods grocery store closed after a $3 million renovation.
“We are going to make vacant spaces leasable,” Brendan said.
The two men said they certainly believe the region has great days ahead of it.
“You would have to be blind to not see this is a community on the upswing,” Smouha said.
Tim Nugent, president and CEO of the Economic Alliance of Kankakee County, said he met with the investors a couple months ago and came away impressed.
“Meadowview is an important part of the city,” Nugent said. “... But if people are looking for it to return to what it was, I don’t think it’ll come back to that. But I do believe this type of retail space has a future. There can be life there, just in a different format.”