Inland Private Completes Final Mariano’s Fresh Market Sale with 9.5% Annualized Return
Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, has sold Mariano’s Fresh Market in Arlington Heights, Illinois.
Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, has sold Mariano’s Fresh Market in Arlington Heights, Illinois for $25.5 million on behalf of one of its 1031 investment programs.
The sale marks the final liquidity event across three separate 1031 investment programs that consisted of four total Mariano’s Fresh Market Chicagoland locations in Arlington Heights, Palatine, Vernon Hills and Elmhurst.
The 66,393-square-foot Arlington Heights property is located approximately 25 miles from Chicago and was the first Mariano’s Fresh Market store to open in Illinois in July 2010.
“We began purchasing Mariano’s locations on behalf of investors beginning in 2011, shortly after the Arlington Heights store was built because we recognized the growth potential and brand strength of Mariano’s from the onset,” said Keith Lampi, president and chief operating officer of IPC. “As Mariano’s achieved explosive growth and expansion in the years following the opening of its flagship location, we strategically acquired additional properties with strong location fundamentals.”
The Arlington Heights property is 100 percent leased to Roundy’s Supermarkets Inc., a Midwest grocer and wholly-owned subsidiary of the Kroger Co. since December 2015.
Lampi added. “IPC was an early adopter of what has been the fastest-growing grocery brand in the Chicagoland area, and now our investors are able to harvest the benefits through monetization.”
The Arlington Heights sale resulted in a total return to the investors of 169 percent (calculated based on the aggregate amount of original capital invested in this property). In addition, the sale resulted in a 9.48 percent average annualized return to investors.
The additional Mariano’s Fresh Market dispositions included the sale of the Vernon Hills location in May 2016, the Elmhurst location in May 2016, and the Palatine location in November 2017 resulted in a weighted average total return of 158 percent, and a 13.8 percent weighted average annualized return to investors across the three IPC-sponsored investment programs.
The weighted average returns are calculated by multiplying the return for each program by the capital invested in that program and dividing that amount by the total capital invested in all three programs.
Inland Private Capital Corporation offers replacement property investments for persons participating in a 1031 tax deferred exchange, as well as opportunities for accredited investors who are seeking a real estate investment. As of March 31, 2018, the company had sponsored 221 private placement programs with 596 total properties. Eighty-one assets had been sold, in the aggregate, as of March 31, 2018.
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