Located at 678 N. York Rd. about 16-miles west of Chicago, the property contains a total land area of about 5.772 acres, with one single-story, stand-alone 75,922 square-foot retail building. Roundy's leases 100% of the property, which was constructed in 2013.

The interest shown by potential buyers would not have been surprising even without the Kroger acquisition. For one thing, Mariano's is generally recognized as the region's hottest grocery. Furthermore, “this store performs very well due to its prime location along York St. immediately north of I-290,” Lampi says. “The property is easily accessible from surrounding communities and has a traffic count of 23,000 vehicles per day on York St. and 150,000 vehicles per day on I-290.”

Coupled with cash flow generated during the holding period, the sale resulted in a total return to the investors of 156.92%, he adds. In addition, the sale resulted in a 22.34% average annual return. Many investors have elected to reinvest their proceeds with Inland Private Capital Corp.

Investors were already willing to pay top dollar for the other Mariano's in the past few years. As reported in GlobeSt.com, in 2014 a Walnut Creek, CA-based company bought a portfolio of four Chicago-area grocery stores, including three Mariano's, for $95 million. Also in 2014, New York City-based Melohn Properties Inc. paid $41 million for a Mariano's in Chicago's South Loop, although that property also had a significant amount of land suitable for new development.

Inland Private Capital Corp. currently manages three other locations on behalf of investors, Lampi says.

CHICAGO—Inland Private Capital Corp. recently sold a Mariano's Fresh Market in west suburban Elmhurst for $25 million. The Oak Brook, IL-based company facilitated the sale of the property on behalf of one of its 1031 investment programs. It was a relatively quick resale of the property, which was purchased just three years ago, but it looks like the 2015 acquisition of the popular grocer's parent company Roundy's Supermarkets, Inc. by Kroger Co. had boosted its value and brought a number of investors to Inland's door.

Michael Kaider and Christian Williams of CBRE represented Inland in the transaction, and Eric Sackler of Coldwell Banker Commercial represented the buyer, Royal Palace Hotels Partnership, LP.

“While the investment horizon was undefined, it was generally positioned as a longer term investment,” Keith Lampi, president and chief operating officer of Inland Private Capital Corp., tells GlobeSt.com. However, “in this instance, the implied credit enhancement from the recent Kroger/Roundy's transaction, coupled with the growth in brand recognition of the Mariano's banner presented a profit-taking opportunity for our investors that came a little sooner than originally expected.”

“This property attracted multiple offers and many interested parties,” says CBRE's Kaider. “Mariano's has become a top grocery provider in the Chicago market and this sale speaks to the confidence that investors have in this brand.”

Located at 678 N. York Rd. about 16-miles west of Chicago, the property contains a total land area of about 5.772 acres, with one single-story, stand-alone 75,922 square-foot retail building. Roundy's leases 100% of the property, which was constructed in 2013.

The interest shown by potential buyers would not have been surprising even without the Kroger acquisition. For one thing, Mariano's is generally recognized as the region's hottest grocery. Furthermore, “this store performs very well due to its prime location along York St. immediately north of I-290,” Lampi says. “The property is easily accessible from surrounding communities and has a traffic count of 23,000 vehicles per day on York St. and 150,000 vehicles per day on I-290.”

Coupled with cash flow generated during the holding period, the sale resulted in a total return to the investors of 156.92%, he adds. In addition, the sale resulted in a 22.34% average annual return. Many investors have elected to reinvest their proceeds with Inland Private Capital Corp.

Investors were already willing to pay top dollar for the other Mariano's in the past few years. As reported in GlobeSt.com, in 2014 a Walnut Creek, CA-based company bought a portfolio of four Chicago-area grocery stores, including three Mariano's, for $95 million. Also in 2014, New York City-based Melohn Properties Inc. paid $41 million for a Mariano's in Chicago's South Loop, although that property also had a significant amount of land suitable for new development.

Inland Private Capital Corp. currently manages three other locations on behalf of investors, Lampi says.