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Shopping Strip

Value Add Neighborhood Retail | 9% CAP on In Place

3215 E Lincolnway, Sterling, IL 61081

Listing Price: $3,525,000

Cap Rate
9.00%
Gross SF
40,982
Rentable SF
40,982
Price/Gross SF
$86.01
Lot Size
3.17 acres
Year Built
1998

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a 41,000 square foot multi-tenant retail center located in Sterling, IL. The property is located at a signalized intersection and consists of two buildings – one 34,000 square foot in-line retail center and one multi-tenant retail outparcel, prominently sited on Lincoln Highway, with visibility to over 27,000 vehicles per day. Given its desirable location at a signalized intersection, this property is positioned within a dense retail corridor, near such prominent retailers as Walmart, ALDI, Kohl’s, Petsmart, Starbucks, Menards and many others.

This opportunity offers a compelling mix of a high cap rate on in place income, with positive leverage eminently achievable, as well as the opportunity to add value through leasing the two remaining vacant
suites, thereby meaningfully growing the property’s income.

Offered for purchase at $86 per square foot, there is little else on the market that is priced as competitively on either a yield or price per square foot basis.

Sterling, Illinois is located off Interstate 80, just 50 miles east of the Quad Cities. The city has invested heavily in building out its industrial infrastructure to benefit from the city’s favorable proximity to I-80. The city currently has two fully leased industrial parks with two more currently in development.

Investment Highlights

  • 9% CAP value-add neighborhood retail center located in the heartland
  • New roof installed 6 months ago with 20-year transferrable warranty
  • Located at a signalized intersection with traffic counts of over 27,000 vehicles per day
  • Priced at $86/sf, far below replacement cost
  • Remarkable leasing momentum - 3 new leases signed and 2 existing tenants have just signed extensions within the last 12 months
  • Significant upside - ability to increase the cap rate over 300bps by leasing the last two remaining vacancies
  • +10% Cash on Cash Return on in-place NOI | 20% Cash on Cash on stabilized pro forma income

Exclusively Listed By

Shopping Strip

Value Add Neighborhood Retail | 9% CAP on In Place

Listing Price: $3,525,000

Cap Rate
9.00%
Gross SF
40,982
Rentable SF
40,982
Price/Gross SF
$86.01
Lot Size
3.17 acres
Year Built
1998

Investment Highlights

  • 9% CAP value-add neighborhood retail center located in the heartland
  • New roof installed 6 months ago with 20-year transferrable warranty
  • Located at a signalized intersection with traffic counts of over 27,000 vehicles per day
  • Priced at $86/sf, far below replacement cost
  • Remarkable leasing momentum - 3 new leases signed and 2 existing tenants have just signed extensions within the last 12 months
  • Significant upside - ability to increase the cap rate over 300bps by leasing the last two remaining vacancies
  • +10% Cash on Cash Return on in-place NOI | 20% Cash on Cash on stabilized pro forma income

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a 41,000 square foot multi-tenant retail center located in Sterling, IL. The property is located at a signalized intersection and consists of two buildings – one 34,000 square foot in-line retail center and one multi-tenant retail outparcel, prominently sited on Lincoln Highway, with visibility to over 27,000 vehicles per day. Given its desirable location at a signalized intersection, this property is positioned within a dense retail corridor, near such prominent retailers as Walmart, ALDI, Kohl’s, Petsmart, Starbucks, Menards and many others. This opportunity offers a compelling mix of a high cap rate on in place income, with positive leverage eminently achievable, as well as the opportunity to add value through leasing the two remaining vacant suites, thereby meaningfully growing the property’s income. Offered for purchase at $86 per square foot, there is little else on the market that is priced as competitively on either a yield or price per square foot basis. Sterling, Illinois is located off Interstate 80, just 50 miles east of the Quad Cities. The city has invested heavily in building out its industrial infrastructure to benefit from the city’s favorable proximity to I-80. The city currently has two fully leased industrial parks with two more currently in development.

Exclusively Listed By

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