Old Orchard Upgrades Common Areas As Part Of Multi-Phase Redevelopment

SKOKIE, IL — The multi-phase redevelopment of Old Orchard Mall is underway, with enhancements to common areas in place this summer ahead of a more substantial redesign of a vacant former department store.

Outdoor spaces and the indoor Nordstrom court corridor include new seating, landscaping and play areas with free, large-format games like cornhole and Connect 4.

Serge Khalimsky, the mall's general manager, said retail and entertainment concepts are scheduled to begin construction on their four individual spaces inside the shuttered Lord & Taylor later this year. The unspecified new businesses are expected to open next spring.

“We continue to revitalize our space, augmenting an already exceptional experience at the center,” Khalimsky said in a statement.

First announced last year following a redevelopment agreement between Paris-based mall landlord Unibail-Rodamco-Westfield, or URW, and the village of Skokie, Old Orchard representatives say they remain on track to secure village approval for the first phase of work.

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The agreement with the village established a new 1 percent sales tax at the mall to provide up to $84 million in reimbursements for upgrades to the mall, which first opened in 1956.

So far, URW representatives have revealed plans to add about 350 apartments to the mall and up to 200,000 square feet of medical office space. They pledged to release more details about planned homes, restaurants, outdoor amenities and "wellness facilities" in the coming months.

This week, mall representatives said management aims to increase the amount of "locally-sourced artwork" around the mall and arrange for "art walk-throughs" for visitors to learn more about featured artists.

And later this month, Old Orchard will host the grand opening of an temporary inflatable play area from the company Funbox. The California-based business operates the self-described "World's Biggest Bounce Park" — a registered trademark, the veracity of which Patch was unable to verify.

Funbox officials aim to support local charities and foster care agencies in each market where the company has opened, with a particular emphasis on support for teens and young adults 15 and up. In Skokie, they are still "still actively looking for a charity to support," according to the company's website, and a representative did not immediately respond to a request for more information. It is reportedly scheduled to operate at the mall through September.

Executives at URW, the real estate investment trust that purchased mall operator Westfield in 2018, announced plans two years ago to unload its portfolio of U.S. malls.

But even before then, the company had reportedly begun defaulting on its mall loans.

URW's U.S. unit, the Westfield Group, walked away from two malls in Tampa Bay, Florida, in late 2020 and from another in Palm Desert, California in 2021.

And the company is surrendering its downtown San Francisco mall to its lender after halting payments on a $558 million loan, the San Francisco Chronicle reported this week. It still owns 18 other U.S. malls — down from 27 in 2021.

Ahead of the agreement with the village to declare the mall "blighted" and hike sales tax at to 11.25 percent for stores and 13.25 percent for restaurants, Old Orchard representatives said their property tax burden in Skokie is higher than at any other Westfield properties.

About 38 percent of its revenue currently goes to taxes — a majority to local school districts.

Khalimsky, the mall's manager, said Old Orchard offers shoppers more than the city of Chicago four miles to the south.

“As a top destination on the North Shore," he said, "we remain focused on creating a suburban oasis that has everything that the city offers and more — where you can shop top fashion, dine at the best restaurants and enjoy the latest in entertainment in a lush, outdoor environment unlike anything else in Chicagoland."

Read more:

• Westfield Old Orchard Redevelopment Plans To Include Medical Offices
• Old Orchard Owner Unveils Redevelopment Plan For Apartments At Mall
• Old Orchard Owner Adds New Stores, Considers Residential Development