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Shopping Strip

Heritage Square - 85% Occupied Value Add | 8.5% CAP

9420 W 143rd St, Orland Park, IL 60462

Listing Price: $1,318,500

Cap Rate
8.50%
Gross SF
13,800
Rentable SF
13,800
Price/Gross SF
$95.54
Lot Size
1.39 acres
Year Built
1985

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Heritage Square, a 13,800 square foot retail center located at the signalized intersection of 143rd Street and John Humphrey Drive in Orland Park, IL. Orland Park lays claim to one of the densest retail submarkets in the Midwest, and Heritage Square is ideally positioned to benefit from its proximity to the neighboring retail properties. The rents are significantly below market at only $10/sf NNN and could be pushed by making cosmetic improvements in the building façade and by working to create a more synergistic tenant roster. The property is well-sited, positioned on 1.39 AC of land with multiple points of ingress and egress and full access onto John Humphrey. Heritage Square is priced at an 8.5% CAP rate and will cash flow well on day one; however, leasing the one remaining vacant space will push the in-place cap rate to nearly 12%, with a corresponding cash-on-cash return of over 20%. Please reach out to Marcus & Millichap with additional questions about Heritage Square.

Investment Highlights

  • Multi-Tenant Retail Center located at a signalized intersection in one of the densest retail nodes in suburban Chicago | Visibility to nearly 30,000 vehicles per day
  • Surrounded by national retailers such as Mariano's (Kroger), McDonald's, and Starbucks | Phenomenal demographics -- density of +60,000 people within 3-miles and average household incomes of $126,575
  • Heritage Square is 0.2 Miles from UChicago Medicine Orland Park, a state-of-the-art outpatient center that also provides specialty care for people who need help managing chronic illnesses
  • Rents are below market and highly replaceable -- at an average of $10/sf NNN, there is room to create significant future NOI growth
  • Value add potential -- Heritage Square has one remaining 2,100 square foot vacant space that will push the cash-on-cash return to approximately 20% once leased
  • At $95/sf, Heritage Square could not be built in today's market for even twice the asking price per square foot

Exclusively Listed By

Shopping Strip

Heritage Square - 85% Occupied Value Add | 8.5% CAP

Listing Price: $1,318,500

Cap Rate
8.50%
Gross SF
13,800
Rentable SF
13,800
Price/Gross SF
$95.54
Lot Size
1.39 acres
Year Built
1985

Investment Highlights

  • Multi-Tenant Retail Center located at a signalized intersection in one of the densest retail nodes in suburban Chicago | Visibility to nearly 30,000 vehicles per day
  • Surrounded by national retailers such as Mariano's (Kroger), McDonald's, and Starbucks | Phenomenal demographics -- density of +60,000 people within 3-miles and average household incomes of $126,575
  • Heritage Square is 0.2 Miles from UChicago Medicine Orland Park, a state-of-the-art outpatient center that also provides specialty care for people who need help managing chronic illnesses
  • Rents are below market and highly replaceable -- at an average of $10/sf NNN, there is room to create significant future NOI growth
  • Value add potential -- Heritage Square has one remaining 2,100 square foot vacant space that will push the cash-on-cash return to approximately 20% once leased
  • At $95/sf, Heritage Square could not be built in today's market for even twice the asking price per square foot

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Heritage Square, a 13,800 square foot retail center located at the signalized intersection of 143rd Street and John Humphrey Drive in Orland Park, IL. Orland Park lays claim to one of the densest retail submarkets in the Midwest, and Heritage Square is ideally positioned to benefit from its proximity to the neighboring retail properties. The rents are significantly below market at only $10/sf NNN and could be pushed by making cosmetic improvements in the building façade and by working to create a more synergistic tenant roster. The property is well-sited, positioned on 1.39 AC of land with multiple points of ingress and egress and full access onto John Humphrey. Heritage Square is priced at an 8.5% CAP rate and will cash flow well on day one; however, leasing the one remaining vacant space will push the in-place cap rate to nearly 12%, with a corresponding cash-on-cash return of over 20%. Please reach out to Marcus & Millichap with additional questions about Heritage Square.

Exclusively Listed By

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