Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has completed the sale of three single-tenant retail properties in Illinois in separate transactions for a combined value of $5.2 million. All three sales were significant because they had less than eight years of lease term remaining. The properties are located in Woodridge, Arlington Heights, and O’Fallon, Illinois.
Hanley Investment Group Vice President Jeff Lefko and Executive Vice President Bill Asher arranged the sale of a single-tenant Carrabba’s Italian Grill ground lease located at 1001 W. 75th Street in Woodridge, Illinois. The lease had 6.5 years remaining on the original lease term. Built in 2002, the 6,500-square-foot freestanding building is situated near the signalized intersection of W. 75 Street and Lemont Road and is shadowed-anchored by Kohl’s. Co-tenants in the shopping center include Five Below, Shoe Carnival and Starbucks. According to Lefko, the shopping center is located at an extremely high-traffic intersection with very little pad space vacancy in the market.
Lefko and Asher represented the seller, a private development company based in Schaumburg, Illinois, in the off-market transaction. The buyer, a private investor based in Dallas, Texas, was represented by Jeff Gates of The Kase Group of San Francisco, California. The sale price was $2,047,692.
In Arlington Heights, Illinois, Lefko and Asher completed the sale of a single-tenant, net-leased Chili’s Grill & Bar located at 640 E. Rand Road, the dominant thoroughfare in Arlington Heights. The absolute triple-net lease had seven years remaining on the original lease term. Built in 1989 on 0.42 acres, the 5,995-square-foot freestanding building is located next to Olive Garden, Floor & Décor, Laser Quest and Southpoint Shopping Center and across the street from Town & Country Center, anchored by Best Buy, Dick’s Sporting Goods, JOANN Fabric & Crafts and Walgreens.
Lefko and Asher represented the seller, a private development company based in Schaumburg, Illinois, in the off-market transaction. The buyer, a private 1031 exchange investor from Southern California, was represented by Don Straub of NNN Property in Long Beach, California. The sale price was $1,725,000.
In O’Fallon, Illinois, Lefko and Asher arranged the sale of a new construction single-tenant MedExpress Urgent Care ground lease at 1711 West Highway 50. The lease had eight years remaining on the original lease term. Built in 2016 on 1.0 acres, the 4,700-square-foot freestanding building is located at the signalized Intersection of West Highway 50 and Castle Acres Drive, across the street from Home Depot, PetSmart, and Walmart Supercenter.
The seller, a private investor based in Missouri, was represented by Asher and Lefko, in association with Alex Apter of L3 Corporation, as the seller’s exclusive listing agents. The buyer, a private investor from Southern California, was represented by Helvetica Group based in San Diego, California. The sale price was $1,452,000, representing a cap rate of 5.85 percent, representing the lowest cap rate for a MedExpress Urgent Care in the United States (excluding Florida and Texas), according to CoStar Group.
According to Lefko, Hanley Investment Group procured a 1031 exchange buyer from California who purchased the property at list price. The buyer was sourced before the firm started formally marketing the property. Hanley Investment Group negotiated a 14-day due diligence and quick close. This transaction marks the fourth single-tenant MedExpress sold by Hanley Investment Group in the last 18 months.
“Despite rising interest rates, these sales highlight the continued demand for well-located, single-tenant, net-lease corporate-guaranteed properties,” said Asher. “Overall, historical values still remain at all-time highs for certain retail product types (i.e. core grocery-anchored, single-tenant net-leased, and multi-tenant pads) even compared to top of the market pricing in 2006-2007. However, it continues to be vital that assets are priced in accordance with the transitioning market if we’re to see transaction velocity increase moving forward.”