Chicago Developer Closes Deal On Kmart Property In Oak Lawn

OAK LAWN, IL -- A Chicago developer has purchased the old Kmart property in Oak Lawn at 95th Street and Pulaski. The Hubbard Street Group and Keeler Real Estate LLC closed the deal Monday on the 15-acre parcel. The development team purchased the property from Kimco Realty. The final purchase price was not disclosed.

Kmart anchored the shopping center for decades until the store closed in the fall as part of part of mass liquidation of Kmart stores nationwide. The troubled Chuck E. Cheese also bid adieu in November in an agreement with the village to leave after continued security problems.

The Hubbard Street Group’s extensive portfolio includes luxury residential, high-end retail and office developments. Given the Oak Lawn parcel’s prime location across the street from Target and Home Depot, and the expanding Advocate Christ Medical Center, the developers are hoping to attract serious interest in a redeveloped center, according to RE Journals. The final purchase price has not been disclosed.

Current commercial projects by Hubbard include urban retail developments in Lincoln Park boasting a Banana Republic as well as Nordstrom Rack at 1551 N. Sheffield Ave., and suburban Vernon Hills Market Place. The development group also converted the 100-year-old Montgomery into a state-of-the-art office and technology center. Hubbard also counts mixed-use and upscale residential developments, including Hubbard221 in River North and the Field’s Lofts in the historic Marshall Field’s Warehouse

Oak Lawn Economic and Business Director Steve Radice said the developer has agreed to comply with the 95th Street Corridor Plan for retail and commercial development, which the village board adopted in 2014. Some of the ideas bandied about include a hotel with a health club and conference center, with a pair of free standing restaurants, and possibly a small car dealership, Radice said. The possibility of a mixed-use residential and commercial development isn’t off the table either, according to village officials. Radice said another meeting is planned with the development team in the coming weeks.

Preliminary plans call for demolishing the existing building and relocating current tenants Pep Boys and Lumber Liquidators elsewhere in Oak Lawn. The Chase Bank branch and Longhorn Steakhouse will remain. There are no plans to relocate the existing Payless ShoeSource.

File photo | Patch Editor Lorraine Swanson