Inland Sells Last Mariano’s Fresh Market Holding for Nearly $26M

ARLINGTON HEIGHTS, IL—Inland Private Capital Corp. has sold a Mariano’s Fresh Market store here in a deal valued at a gross sale price of $25.5 million.

The transaction through an IPC subsidiary on behalf of its 1031 investment programs, marked the final disposition across three separate 1031 investment programs that consisted of four Mariano’s Fresh Market locations in the Chicago area—Palatine, Vernon Hills, Elmhurst and Arlington Heights.

Crain’s Chicago Business reports that Inland Private Capital, which served as asset manager for the property, sold the Mariano’s Fresh Market in Arlington Heights to a joint venture of State Farm Insurance and Transwestern Investment Group of Dallas, according to property records secured by the trade newspaper.

Located at 802 East Northwest Highway in Arlington Heights, , the 66,393-square-foot building was the first Mariano’s Fresh Market store to open in Illinois in July 2010. The Arlington Heights property is 100% leased to Roundy’s Supermarkets, Inc., a leading Midwest grocer and wholly-owned subsidiary of the Kroger Co. since December 2015.

“We began purchasing Mariano’s locations on behalf of investors beginning in 2011, shortly after the Arlington Heights store was built because we recognized the growth potential and brand strength of Mariano’s from the onset,” says Keith Lampi, president and chief operating officer of IPC. “As Mariano’s achieved explosive growth and expansion in the years following the opening of its flagship location, we strategically acquired additional properties with strong location fundamentals.”

Inland reports that the Arlington Heights sale resulted in a total return to the investors of 169% (calculated based on the aggregate amount of original capital invested in this property). In addition, the sale resulted in a 9.48% average annualized return to investors.

The additional Mariano’s Fresh Market dispositions included the sale of the Vernon Hills location in May 2016, the Elmhurst location in May 2016 and the Palatine location in November 2017 resulted in a weighted average total return of 158%, and a 13.8% weighted average annualized return to investors across the three IPC-sponsored investment programs.

Earlier this month, Inland Private Capital sold a total of four medical office properties in Illinois and Massachusetts for a gross sale price of $45.7 million. IPC, through a subsidiary serves as asset manager for the properties, facilitated the sale of the properties on behalf of the Medical Office Portfolio DST, one of its 1031 investment programs. The company did not identify the buyer or buyers of the four properties.