Investment Program Resulted in a Substantial Return for Inland Private Capital Investors
Oak Brook, Ill. – Inland Private Capital Corporation (“IPCC”) today announced the sale of a Mariano’s Fresh Market in Vernon Hills, Illinois, for a gross sale price of $36.4 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 1720 North Milwaukee Avenue in Vernon Hills, an affluent suburb about 35 miles north of Chicago, the 71,248-square-foot building is situated on a total land area of approximately seven acres.
Constructed in 2011, the property is 100 percent leased to Roundy’s Supermarkets, Inc. (“Roundy’s”). On December 18, 2015, Kroger Co. purchased Roundy’s which includes names such as Copp’s, Pick ‘n Save and Mariano’s Fresh Market.
“The sale of the Vernon Hills location was our second Mariano’s disposition this year, both of which resulted in a substantial return for our investors,” said Keith Lampi, president and chief operating officer of IPCC. “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 are now reaping the benefits through monetization.”
The property was sold at a premium to the investors’ purchase price in 2013. Coupled with cash flow generated during the holding period, the sale resulted in a total return to the investors of 148.48 percent (calculated based on the aggregate amount of original capital invested in the property). In addition, the sale resulted in a 14.05 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 July 31, 2016, IPCC had sponsored 191 private placement programs. The 191 private placement programs include 488 properties, comprised of over 29.23 million square feet of gross leasable area, and including more than 8,941 residential units, for an aggregate offering price of more than $5.95 billion.