DevCorp North Sells Share in Gateway Center

From: Dan Butt Subject: PR: DevCorp North sells share in Gateway Center MEDIA RELEASE October 11, 2007 Developer buys out DevCorp North Gateway share, sells shopping center Combined Development-Howard LLC (CDH), the owner of the Gateway Centre shopping center, has sold the Rogers Park development at Howard and Clark streets to SEC Clark & Howard LLC c/o RREEF America, an investment advisory firm. Late last year, at the request of CDH, DevCorp North sold its interest in the center to CDH. “We understood that CDH wanted to have sole ownership of the center and be unencumbered by a small interest partner in the project,” said Kimberly Bares, executive director of DevCorp North. The sale was finalized in November, 2006. DevCorp North received $75,188 for its 5% interest in the partnership, which will be used as a down payment for the commercial condominium that the organization is purchasing at 1448 W. Morse Avenue. “We wanted to reinvest that money back into the community, and by purchasing an office space we were able to jump-start a development at Morse and Greenview,” said Tommy FitzGibbon, president of the board. The original agreement between DevCorp North and CDH contained prohibited uses as part of a restrictive covenant, and were based on numerous community meetings and concerns about appropriate uses. Those prohibitions remain in effect, and include liquor stores, adult book stores, coin operated laundromats, and gas stations. Construction projects such as the Renaissance Lofts condominiums directly adjacent to the Gateway Centre, and the 17 story residential rental development across the street from the shopping center in Evanston, point to the fact that DevCorp North accomplished its mission: to spur new development along Howard Street. The upgrading of the Howard El station by the CTA and the construction of a park facility at Gale Park are also indications that the area is getting much-needed investment. Another DevCorp North goal was to bring a full-service grocery store to Rogers Park. Dominick’s was the first store to open at Gateway Centre and has since been a great neighborhood partner. A multi-million-dollar remodel to Dominick’s new Lifestyle format is currently under way at the 70,000 square foot grocery store. Other Lifestyle stores are the Green Bay Road Dominick’s in Evanston, Northfield store and Roosevelt and Canal. The anticipated grand re-opening of the Lifestyle store in Gateway Centre will be in mid-November. Since Dominick’s opened, other national retail stores such as Marshalls, Bally Total Fitness, Foot Locker, Ashley Stewart, The UPS Store, GNC, Game Stop and Life Storage have opened in the Gateway Centre, offering much-needed products and services in the community. It is expected that the completion of the Howard El Station renovation and new terminal will result in the leasing of additional commercial spaces located along Paulina Street. On August 31, 2007, the DiMatteo family (former Dominick’s owners) sold Gateway Centre and six other locations. Mid-America Asset Management, based in Oakbrook Terrace, will take over the daily operation and management of the center as well as continue in their capacity in providing leasing services. “Mid-America is a very professional and well-respected management company, so I could not be more pleased that they will be taking over the management of Gateway Centre,” said Barbara Muehl, vice president of Trident Developments, the management company for Gateway Centre since 2002.

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