Crest Hill, Ill. — Mid-America Real Estate Corp.’s Net Lease Investment Group recently brokered the sale of a two-tenant 88,000-sq.-ft. retail building leased to Big Lots and Home Owners Bargain Outlet in Crest Hill, Ill. A private investor in California purchased the property from a local Chicago area investor for $2.25 million.
Major retailers surrounding the property include Jewel/Osco, Ultra Foods, Food 4 Less and TJ Maxx.
A year ago, when Mid-America (www.midamericagrp.com) received the assignment to broker the sale of the property, the real estate was worth $1.85 million based on the combined income stream and existing lease expiration terms of three years.
Mid-America advised the owner to offer Big Lots a monetary incentive in exchange for a fresh 10-year lease. The owner invested less than $200,000 in a new storefront and received a seven-year lease extension in return. The maneuver boosted the property value by $400,000, returning the $200,000 investment principle plus an additional $200,000.