CHICAGO—Retail investors continue to regard properties used by Mariano's Fresh Markets as some of the best opportunities in the Chicago area. Inland Private Capital Corp., through a subsidiary which serves as asset manager, recently facilitated the sale, on behalf of one of its 1031 investment programs, of the Mariano's in Palatine, IL, to a private investor for a gross sale price of $29.025 million.
Located at 545 N. Hicks Rd., the 71,324-square-foot building, which was constructed in 2011, sits on 6.5 acres of land approximately 30 miles northwest of Chicago. Roundy's Supermarkets, Inc., which includes such brands as Copp's, Pick 'n Save and Mariano's, occupies 100% of the property.
“The sale of the Palatine location completed our Chicagoland Fresh Market Venture DST investment program, which also included a Mariano's Fresh Market in Vernon Hills, IL, that previously sold for $36.4 million,” says Keith Lampi, president and chief operating officer of IPC. “We began purchasing Mariano's locations on behalf of investors beginning in 2011, and as early adopters of what has been the fastest-growing grocery brand in the Chicagoland area, our investors reaped the benefits through substantial returns with the sale of both properties.”
The sale resulted in a total return to the investors of 157.61% percent, Inland reports. In addition, the sale resulted in a 12.26% average annual return.
Christian Williams and Michael Kaider of CBRE's Oak Brook office represented Inland Private Capital in the deal. “Though retail is going through a bit of a turbulent time period, high-performing, single-tenant net leased assets with strong credit continue to be an attractive investment avenue,” says Kaider.
According to CBRE research, grocery sales in the US totaled more than $631 billion in 2016 and accounted for the lion's share of the $707 billion food and beverage stores category, which includes supermarkets, alcohol stores and other smaller food retailers.
In 2017 alone, CBRE has arranged sales of five Mariano's Fresh Market properties including deals in Hoffman Estates, Frankfort, Lake Zurich, and Harwood Heights.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
