Mid-America Real Estate Corporation’s Net Lease Investment Group recently announced the $1.8 million sale of a triple net ground lease for a new 16,750 square-foot freestanding Aldi building in Chicago’s south side Chatham community. The buyer is a private California investor.
According to Mid-America broker Bill Wright, whose firm was the exclusive representative for the seller, an affiliate of Chicago-based Monroe Investment Partners LLC, this transaction is another example of private investors putting their money into “hands-off” net leased retail properties that require no landlord maintenance. “This deal continues the trend of West Coast private capital seeking investment in solid “core” Midwestern markets,” he says, “and this ground lease is a perfect example of what they’re looking for here.” Terms of the lease include a rent increase of 10 percent every five years, with 18+ years remaining on the initial term.
The Aldo building was constructed in 2011, and is located at 8500 South Holland Road, at the southwest corner of West 85th Street and South Holland Road in Chicago. The building is situated within the 50-acre Chatham Market retail development, which consists of approximately 360,000 square feet of new and proposed gross leasable retail space anchored by Lowe’s.
According to Mr. Wright, additional anchor draw will be provided by Chicago’s first and only Walmart Supercenter (158,215 square feet), which is currently under construction and expected to open in January 2012. “There is also a freestanding Walmart Express at the north end of the development that opened in July 2011,” he says. “This is the first of four Express concept stores planned to open in Chicago in the next year, and Walmart’s decision to open both a Supercenter and Express store in Chatham Market demonstrates the significant demand for low-cost retailers in this area, which will also benefit Aldi.” The Supercenter is located directly to the north of the Aldi site.
Bill Wright, Tom Fritz and Mark Goldberg comprised the Mid-America team representing the seller.