Value Add Neighborhood Retail | 90% Occupied
9.00% CAP on In-Place NOI | 11.13% CAP Pro-Forma
Marketing description
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a 9,422 square foot neighborhood retail center located in Hazel Crest, directly off the I-294 highway. Well-sited at the signalized intersection of Dixie Hwy and 171st St, the property features an above average yield of 9.00% on the in-place income.
The property has shallow depth bays, ample parking, and benefits from the wellestablished tenants in place. With one vacant unit accounting for 10% of the square footage, investors can further push their Year 2 CAP rate to 11.13%. Current ownership recently signed another lease for ~2,000SF, establishing clear demand for space here.
The retail center has been well-maintained by the current owners, who are largely focused on their industrial and office portfolio of over 1,500,000 square feet. All the tenants operate on Modified Net leases, reimbursing all CAM Expenses, Insurance, partial Management Fees, and their pro rata share of real estate tax increases over the base year expense.
Located on the edge of a dense neighborhood, the center benefits from solid suburban demographics – over 75,000 people live within three miles of the property and average household incomes exceed $91,000 annually within the same radius. This retail property further benefits from visibility to 15,000 vehicles per day on Dixie Hwy.
Listed at an 9.00% CAP rate and Price/SF of $98.33, this is an opportunity to purchase a well-performing asset with a yield that’s difficult to replicate elsewhere.
Please contact Marcus & Millichap with additional questions.
Investment highlights
High-yield shopping center offered at an 9.00% CAP rate on in-place income
90% occupied, providing a new owner the ability to push an already abovemarket return
Investors can achieve a Year 2 CAP rate of 11.13% by leasing the 978 square foot vacant space at a market rent of $21/SF MG
Current ownership recently signed a lease for 2,000SF, establishing clear demand for space here
Most tenants reimburse for substantial portions of their pro rata shares of CAM, insurance, and real estate taxes, due to the leases in place
Located directly off the I-294 highway, at the signalized intersection of Dixie Hwy and 171st St | Combined traffic count of over 15,000 vehicles per day
Multiple points of unrestricted ingress and ample parking with over 50 spaces
Well-positioned on the edge of a dense neighborhood, with over 75,000 people and an average household income of $91,000 within 3 miles
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