The Boulder Group, a Wilmette, Illinois-based net leased investment brokerage firm, has completed the sale of a single-tenant, ground-leased Portillo’s property located at 202 Landmark Drive in Normal, Illinois for $4,400,000. This sale marked the lowest cap rate for a Portillo’s property since 2017, according to CoStar.
Portillo’s signed a 20-year ground lease in 2017. The lease features zero landlord responsibilities. Additionally, there are 10 percent rental escalations every five years. Boulder Group president, Randy Blankstein, and partner, Jimmy Goodman, represented buyer in the transaction. The seller is a Midwest-based real estate developer and the purchaser was a private investor in a 1031 exchange.
“Single-tenant restaurant properties continue to garner significant interest amongst private investors,” said Blankstein.
“E-commerce-resistant retailers continue to be in high demand amongst investors,” Goodman said.
The new construction Portillo’s property is located along US-66 at the corner of a signalized intersection with excellent visibility. US-66, a primary north-south thoroughfare, experiences traffic counts of 30,000 VPD. The Portillo’s property is located near retailers including Walmart Supercenter, Meijer, TJ Maxx, Best Buy, Target, Menards, Sam’s Club and Von Maur. There are over 200,000 people living within five miles of the property.
