Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, has sold a Mariano’s Fresh Market in the Chicago suburb of Palatine, Illinois, for $29 million, on behalf of one of its 1031 investment programs.
The 71,300-square-foot building is situated on nearly 7 acres and located approximately 30 miles northwest of Chicago. Constructed in 2011, the property is 100 percent leased to Roundy’s Supermarkets Inc. In December 2015, Kroger Co. purchased Roundy’s which includes names such as Copp’s, Pick ‘n Save and Mariano’s Fresh Market.
“We are pleased that the sale of the Palatine location completed our Chicagoland Fresh Market Venture DST investment program, which also included a Mariano’s Fresh Market in Vernon Hills, Illinois that previously sold for $36.4 million,” said Keith Lampi, president and chief operating officer of IPC.
He added, “We began purchasing Mariano’s locations on behalf of investors beginning in 2011, and as early adopters of what has been the fastest-growing grocery brand in the Chicagoland area, our investors reaped the benefits through substantial returns with the sale of both properties.”
The sale resulted in a total return to the investors of 157.6 percent (calculated based on the aggregate amount of original capital invested in this property). In addition, the sale resulted in a nearly 12.3 percent average annual return (calculated using the cash flow from the property’s operations, the proceeds from the sale, and the duration of the hold period to determine an annualized rate of return, inclusive of all fees and expenses).
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 September 30, 2017, IPC had sponsored 216 private placement programs. The 216 private placement programs include 584 properties, comprised of more than 36.8 million square feet of gross leasable area, and including 11,200 residential units, for a total offering price of nearly $7 billion.