Oak Brook, Ill. – Inland Private Capital Corporation (“IPC”) today announced the sale of a Mariano’s Fresh Market in Arlington Heights, Illinois, for a gross sale price of $25.5 million. IPC, through its subsidiary which serves as asset manager, facilitated the sale of the property on behalf of one of its 1031 investment programs. The sale marks the final liquidity event across three separate 1031 investment programs that consisted of four total Mariano’s Fresh Market Chicagoland locations in Arlington Heights, Palatine, Vernon Hills and Elmhurst.
Located at 802 East Northwest Highway in Arlington Heights, approximately 25 miles northwest of Chicago, the 66,393-square-foot building was the first Mariano’s Fresh Market store to open in Illinois in July 2010.
“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,” said 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.”
The Arlington Heights property is 100 percent leased to Roundy’s Supermarkets, Inc. (“Roundy’s”), a leading Midwest grocer and wholly-owned subsidiary of the Kroger Co. since December 2015.
“Each location’s strong performance and enhanced brand recognition, combined with our company’s expertise in due diligence, acquisitions and asset management, made this an extremely profitable strategy and execution completed on behalf of our investors,” Lampi added. “IPC was an early adopter of what has been the fastest-growing grocery brand in the Chicagoland area, and now our investors are able to harvest the benefits through monetization.”
The Arlington Heights sale resulted in a total return to the investors of 169 percent (calculated based on the aggregate amount of original capital invested in this property). In addition, the sale resulted in a 9.48 percent 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 percent, and a 13.8 percent weighted average annualized return to investors across the three IPC-sponsored investment programs. The weighted average returns are calculated by multiplying the return for each program by the capital invested in that program and dividing that amount by the total capital invested in all three programs.
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., one of the nation’s largest commercial real estate and finance groups, which is comprised of independent legal entities, some of which may be affiliates, share some common ownership or have been sponsored and managed by such entities or subsidiaries thereof. As of March 31, 2018, IPC had sponsored 221 private placement programs with 596 total properties. Eighty-one assets had been sold, in the aggregate, as of March 31, 2018.