Oak Brook, Ill. – Inland Private Capital Corporation (“IPCC”) today announced the sale of a Mariano’s Fresh Market in Elmhurst, Illinois, for a gross sale price of $25 million. IPCC, through its subsidiary which serves as asset manager, facilitated the sale of the property on behalf of one of its 1031 investment programs.
Located at 678 North York Road in Elmhurst, about 16-miles west of Chicago, the property contains a total land area of approximately 5.772 acres, with one single-story, stand-alone 75,922 square-foot retail building.
The property, which was constructed in 2013, is 100 percent leased to Roundy’s Supermarkets, Inc. (“Roundy’s”). On December 18, 2015, Kroger Co. purchased Roundy’s which includes such banners as Copp’s, Pick n Save and Mariano’s Fresh Market.
“This was a very successful investment for IPCC that resulted in a substantial return for our investors,” said Keith Lampi, president and chief operating officer of IPCC. “Investors purchased this asset in 2013, and it performed positively due to its strong location fundamentals and the credit enhancement resulting from the Roundy’s/Kroger transaction that occurred late last year.”
The property was sold at a premium to the investors’ purchase price. Coupled with cash flow generated during the holding period, the sale resulted in a total return to the investors of 156.92 percent (calculated based on the aggregate amount of original capital invested in the property). In addition, the sale resulted in a 22.34 percent average annual return (calculated using the cash flow from the property’s operations, the proceeds from the sale, and the duration of the hold period to determine an annualized rate of return, inclusive of all fees and expenses).
About Inland Private Capital Corporation
Inland Private Capital Corporation, based in Oak Brook, Ill., offers replacement property investments for persons participating in a 1031 tax deferred exchange, as well as opportunities for accredited investors who are seeking a real estate investment. Inland Private Capital Corporation is a part of The Inland Real Estate Group of Companies, Inc., which is comprised of independent legal entities, some of which may be affiliates, share some common ownership or have been sponsored or managed by Inland Real Estate Investment Corporation or its subsidiaries. As of May 15, 2016, IPCC has sponsored 188 private placement programs. The 188 private placement programs include 484 properties, comprised of over 28.9 million square feet of gross leasable area, and more than 7,110 residential units for an aggregate offering price of more than $5.863 billion.