FEATURE ARTICLE, MAY 2008

THE ARBORETUM SERVES AS LAUNCHING PAD
A number of retail and entertainment concepts are entering the Midwest, or U.S., marketplace at The Arboretum.
Randy Shearin

The Arboretum at South Barrington will be home to the first L.L. Bean in the Midwest, as well as the country’s first Village Roadshow Gold Class Cinema.

In an environment where retail projects are being routinely postponed and cancelled, The Arboretum of South Barrington has been making national headlines by luring high profile tenants — new to Chicagoland and in one case, the United States — and remaining fully committed to a fall 2008 opening date.

“We are all in a very challenging retail market right now, no question,” says The Jaffe Companies’ President Michael Jaffe, developer of the 600,000-square-foot lifestyle center. “Fortunately, we have an outstanding site, a strong trade area and a who’s who list of tenants that want to reach the affluent consumer in Chicago’s underserved northwest suburbs.”

Legendary retailer L.L. Bean will be making its Midwest debut at The Arboretum. The 30,000-square-foot store will be the retailer’s first location outside of the Northeast, and its first store to open in its nationwide expansion rollout. The store is being built to U.S. Green Building Council’s LEED standards. The Arboretum location will be L.L.Bean’s seventh green store, incorporating creative use of recycled and reclaimed materials, as well as energy-efficient heating, cooling and lighting systems.

The Arboretum will also serve as the launching pad for the United States premiere of Village Roadshow Gold Class Cinema. This Australia-based theater chain features concierge service, eight screens, and 40-seat theaters with individual reclining seats and table service. Like L.L. Bean, Gold Class Cinema — its corporate parent happens to be one of the film industries most active producers of international blockbuster features — has chosen The Arboretum as its first location in the rollout of its national growth strategy.

While The Jaffe Companies has had great success in attracting top tier national tenants to the project, including Ruth’s Chris Steakhouse, Chico’s, Coldwater Creek, Victoria’s Secret, Arhaus Furniture and DSW, the developer has incorporated a strong regional presence to its tenant mix, as well.

“True lifestyle centers are, in essence, the new downtowns,” Jaffe explains. “The best possible shopping experience for the consumer blends the best of national retailers with the distinctive flavor of local and regional tenants.”

Chicago-based tenants at The Arboretum will include: Pinstripes Bowling/Bocce/Bistro with its second location; Coopers Hawk Winery & Restaurant with its fourth location; and Toms-Price Furniture, Blu Coral Sushi and Suiteplay! are all bringing their fifth locations to The Arboretum.

“The best lifestyle centers have a strong mix of local and national retailers, and are highly integrated into the community fabric. L.L. Bean, for example, will serve a geographically large trade area, larger than is typical for a traditional lifestyle center,” explains Jeff Green of California-based retail real estate feasibility firm Jeff Green Partners. “That, combined with the uniqueness of the high-end local tenants opening at The Arboretum, ensures a trade area that will be upwards of 1 million people.”

While the tenant mix has certainly driven a great deal of the retailer interest in the center, The Arboretum’s location also plays an integral role in its leasing success.

The corridor in which The Arboretum is located leads to Illinois’ only Cabela’s sporting goods store, Sears Holding Corporation’s world headquarters and the 400,000-square-foot power center Poplar Creek Crossing. Factor in the 11,000-seat Sears Centre concert venue and arena, a 14-story resort and water park, and a 9,000-seat outdoor music venue, and the result is a magnetic regional destination that draws several million visitors annually.

The area has a compelling combination of daytime populations, and large-draw evening and weekend entertainment that can be found along Route 72 with Cabela’s, the waterpark and the entertainment arenas.

“One of the keys to this corridor’s appeal is its direct access to I-90’s four-way exchange,” Jaffe explains. “There are a number of high-end retail developments in the north suburbs, but none have direct access to an expressway or adjacency to such diverse entertainment venues. This ease of access significantly increases the retail market area with over 750,000 people living within a 15-minute drive of the site. The opportunities for continued growth over the next 10 years are significant.”

The financial stability of the project has also played a significant role in its leasing momentum. The Jaffe Companies partnered with RREEF/CalPERS for financing, and is fully funded for construction and opening.

While much of the retail development community will sit out 2008 and, possibly, 2009, The Arboretum’s forward momentum continues to accelerate. By attracting key tenants and relentlessly adhering to a construction schedule that will ensure an on-schedule September opening, The Arboretum has established itself as a major center that should be on the radar screen of expanding regional and national retailers.

©2008 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.