Owner Doubles Investment with Lease Ext.

CHICAGO—Net leased products are quite popular these days, but it helps to have a long-term lease that will make investors more comfortable. Mid-America Real Estate Corporation’s Net Lease Investment Group, for example, just brokered the sale of a two-tenant 88,000-square-foot retail building leased to Big Lots and Home Owners Bargain Outlet in suburban Crest Hill.

“When we first took on this assignment, Big Lots and HOBO each had three years of primary term remaining on their leases,” said Tom Fritz of Mid-America. “The value at the time was $1.85 million based on the combined income stream and existing lease terms.” However, a private investor in California purchased the property from its local Chicago owner for $2.25 million.