27 Sibley Street, Hammond, IN 46320 For Sale

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a nearly 10,000 square foot retail center located in Hammond, Indiana. The property is anchored by a drive-thru BMO Harris Bank branch, as well as shadow anchored by a Strack & Van Til (Hy-Vee) supermarket, to which this retail center is positioned as an outparcel. BMO’s A+ credit rating (per Standard & Poors’ Global Credit Rating) backs more than 50 percent of the property’s cash flow, and three out of four of the tenants are national, multi-unit operators.

Priced well below the cost it would take to build today, this property is offered for sale at $269 per square foot, or at a 7.50 percent CAP rate. As institutional capital has migrated into neighborhood strip centers as a preferred asset class, average cap rates have compressed to record levels.

Due to the Community Reinvestment Act, the government mandates that banks serve moderate and lower income communities, ensuring that BMO will remain sticky to this location. Furthermore, the cost of identifying available land, gaining zoning approvals for multi-lane drive-thrus and building a new bank branch elsewhere in Hammond is completely cost-prohibitive, further guaranteeing the longevity of BMO.

Northwest Indiana has enjoyed sustained economic and demographic growth over the last twenty years due to its pro-business regulatory environment. Both businesses and people have migrated from Illinois across the border to enjoy the lower cost of living that Indiana affords. Items such as cigarettes, liquor and gasoline, which is taxed at a higher rate in Illinois, continually draws Chicago residents across the border to purchase these products in Indiana. This trend has provided an enormous tailwind to the Indiana economy and has bolstered the state’s retail sales prodigiously.

Please reach out to Marcus & Millichap with additional questions about this opportunity.