(For more retail coverage, click GlobeSt.com/RETAIL.)
WARRENVILLE, IL-A 1.6-acre single-tenant ground lease at Winfield and Diehl roads has been sold by Baum Realty Group. The property is 100% occupied by a retail location of the Bank of America. The property was sold by a private developer based in Winnetka, a North Shore suburb of Chicago. The buyer was not disclosed. The deal was valued at $3.2 million.
Chad Firsel, an EVP at Baum Realty, represented both parties in the transaction. He tells GlobeSt.com that the area continues to be a hot retail market. "In addition to this deal in Warrenville, I've recently done deals in nearby Naperville and Aurora. This particular deal in Warrenville attracts a lot of attention because of Cantera," he tells GlobeSt.com.
Cantera, a former quarry located on 650 acres, was developed in the 1980s into a business, residential and entertainment/retail development. "The location of the property, coupled with the credit-worthiness of a tenant like Bank of America, made this a great investment opportunity," Firsel says.
The CB Richard Ellis 2006 Market Outlook Report for 2006 suggests that retail remains the preferred investment vehicle for buyers of varying types. Joe Parrott, a retail broker at CBRE, tells GlobeSt.com "outside of Cook County, there is a pent-up demand for investment-grade retail." This continued interest also causes rents to go up as well. Retail rental rates in the far western suburbs can range from the high $20s in the Naperville area to close to $20 per sf in Kane County, according to the CBRE Market Outlook Report.
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