July 19, 2022 9:00 AM
Newmark announces it has completed the sales of a single-tenant net-leased Mariano’s Fresh Market grocery store and an adjacent but separately owned ground-leased parking lot in an affluent and rapidly growing downtown submarket of Chicago, Illinois. The assets traded from two separate sellers to an undisclosed purchaser for a total of more than $58 million.
The transactions were spearheaded by Newmark’s Net Lease Capital Markets group comprising Vice Chairman Matt Berres, Director Samer Khalil and Associate Karick Brown in cooperation with Carrie Frye. When the Newmark team sourced a buyer for the Mariano’s property, the parking lot owner also agreed to sell the ground lease to the same buyer.
“This property’s strategic location in Chicago’s South Loop, premier Mariano’s (Kroger) brand and passive lease structure make this an unparalleled investment opportunity,” said Berres. “We were pleased to also arrange the sale of the ground-leased parking lot to the same buyer.”
The Mariano’s Fresh Market building was built-to-suit in 2013 for the grocer, a subsidiary of Kroger and a premier brand in the Chicagoland area. The modern, Class A property measures 65,568 square feet and offers ample ground level and rooftop parking. The undisclosed purchaser acquired the property from a private family office investor from New York for $52.4 million. The ground-leased parking lot measures 19,067 square feet and traded from a separate undisclosed private investor for $6 million.
The assets are situated on South Clark Street in Chicago’s South Loop, the city’s fastest growing neighborhood. Mariano’s benefits from a location adjacent to a major four-lane roadway, which sees approximately 23,499 vehicles per day, The South Loop has doubled in population over the past decade, fueling demand for retail, restaurants, shopping centers, and new housing.
Across the U.S., retail investment activity recovered substantially during the first quarter of 2022, according to Newmark Research. National retail sales volume increased 102.3% year-over-year to $18.6 billion, the strongest first quarter in five years. In addition to early pandemic favorites such as grocery-anchored retail, other retail segments such as strip centers have attracted investor demand in 2022. Overall consumer willingness to shop in stores has increased as COVID-19 restrictions are lifted across the country and foot traffic is being aided by trends such as “buy-online-pick-up-in-store.”
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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