As a staples-based retailer, grocers offer a safety measure in a dangerous retail market disrupted by e-commerce competition and a powerful force during a pandemic when more people are eating at home. became an existence.
Broker Jason Meyer, senior director of Stan Johnson’s New York office, who arranged the sale, said, “During COVID, we’ve seen a really big uptick in grocery stores.
Those values are also changing every moment. In June, Glenview’s Jewel Osco sold for his $17.7 million, up from 42% in December 2017. He sold for $12.5 million.
Mariano’s store has been a particularly hot commodity for some time.During the summer, Mariano on the South Loop $52.4 million, Up from $40.5 million in a previous sale in 2014.
The Crystal Lake store at 105 Northwest Highway opened in 2018, just months before it was purchased for $25.2 million by a venture led by New York investor Michael Tsompus, according to MSCI Real Capital Analytics, a New York research firm. Opened. The venture sold the store to the family’s office in New York earlier this month for $35.5 million, Meyer said, declining to identify a buyer.
Tsoumpas, who sold his New York apartment and invested the proceeds elsewhere, said he was pleased with the results of Mariano’s investment.
Tsoumpas, principal of Tsoumpas Realty, said:
Mariano’s, owned by the Kroger chain, occupies the property under a lease that expires in 17 years, according to Stan Johnson’s website. The property is generating $1.48 million in net operating income, according to the site.
Tsoumpas said he was not familiar with Mariano until Maier suggested he consider buying the Crystal Lake property.
“It makes Whole Foods look inferior,” he said. “I was really impressed with the product.”
Rising interest rates are chilling the commercial real estate market, pushing up borrowing costs for investors and pushing down property values. But Crystal Lake’s estate recently came with something of particular value. It’s a possible mortgage.
Meyer said buyers could inherit the property’s existing mortgage at a lower-than-market rate rather than taking out a new loan at a higher rate. The current loan he has is due in 7 years and the interest rate is 4.45% for him.
For new loans, “it will be 6.25%,” says Maier.
That also means Tsoumpas will be borrowing for its next acquisition, a Florida supermarket, at a much higher rate than at the beginning of the year. But Mariano’s deal could not be resisted.
“I’m thrilled with it,” he said.