An investment partnership comprised of Chicago-based Origin Capital Partners and Newgard Development has completed the disposition of the 113,624-square-foot Food 4 Less Shopping Center in Melrose Park. The property was acquired by a national REIT for $17.75 million.
The Food 4 Less Shopping Center property, at the intersection of North Avenue and 25th Avenue, includes 113,624 square feet of grocery-anchored and inline retail space as well as free-standing outparcels. Food 4 Less, owned by Kroger Co., occupies 65,439 square feet of space. Inline retail space totals 30,076 square feet with tenants that include Starbucks, FedEx and T- Mobile.
The center also includes outparcels occupied by Fifth-Third Bank and a gas station. A third outparcel will be occupied by Advanced Auto upon completion of a 14,040-square-foot Super Hub distribution and retail building.
Origin and Newgard purchased the property from MB Financial Bank in February 2011. At the time of acquisition the property was 88 percent leased. Since acquiring the property, occupancy increased to 95 percent, with 6,349 square feet of positive absorption, and a lease was executed with Advanced Auto for a build-to-suit on 1.6 acres of land.
“From the time we acquired the Food 4 Less Shopping Center, our strategy has been to add value to the center by building occupancy and identifying other opportunities to increase cash flow,” said Bill Rogalla, president, Origin Capital Partners. “We fulfilled our objectives to our investors and capitalized on this opportune time to sell.”
The Food 4 Less Shopping Center was originally developed in 2006 by V Land Corporation. The property was Origin’s first acquisition for its first value-add real estate fund, the Origin Capital Opportunity Fund.
“Grocery anchored retail centers continue to represent a strong investment opportunity in Chicago,” said Paul Utigard, principal, Newgard Development. “This center features a value-driven concept that has done well in this marketplace and is supported by a strong mix of national retailers.”
