Investment Overview

Marcus & Millichap, as exclusive advisor, is pleased to present the opportunity to acquire a 100 percent fee simple interest in the Crossroads Centre (The “Property”), an 81 percent occupied, 31,829-square-foot value add neighborhood shopping center located in Pekin, Illinois. Shadow anchored by Ace Hardware and ValuCheck Supermarket, Crossroads Centre is strategically positioned near the busiest intersection in Pekin at the signalized corner of Court Street and Parkway Drive (38,000 vehicles per day). Built in 2000 on a 2.45-acre site, the Property consists of three buildings totaling 31,802 square feet and a 0.34-acre development ready vacant out lot pad. The Property features unmatched frontage and visibility with two prominent pylon signs at “Main & Main” and easy access to a convenient location that caters to the surrounding residential communities. In addition, Crossroads Centre benefits from the large concentration of surrounding national retailers including Pet Supplies Plus, Dunkin’ Donuts, Walgreens, Panda Express, AT&T, Taco bell, and OSF Urgent Care, among others. The highly visible asset features a complementary mix of ecommerce resistant, service-oriented tenants with a demonstrated history of long-term success at the Property. Six of the nine tenants have been at the Property for over a decade, demonstrating the tenants’ long-term success and commitment to the location. The well-established mix of primarily dining and service-oriented tenants includes Little Caesar’s, Fortress Bank, Riviera Salon & Spa, Mings of Pekin Restaurant, Arona Home Essentials, Glitter Nails, The Title Center, and Professional Leasing Services. The aesthetically pleasing building features a brick façade, carefully groomed landscaping, and has been exceptionally well maintained. Current ownership has invested more than $400,000 into capital improvements at the Property over the last several years including all new HVAC units, fully repaved parking lot, and new roof overlay in 2019 with a 10-year warranty, providing minimal upkeep and virtually zero capital expenditure from a new owner. Crossroads Centre offers investors a secure and stable asset with a significant value-add opportunity through lease-up of the last remaining vacancy which totals 6,136 square feet. Once the Property is stabilized, the net operating income will increase to more than $310,000 with a pro forma cap rate north of 10 percent and a 15 percent-plus Cash on Cash return, providing a clear value creation strategy. There is also an opportunity to convert the gross leases to triple net providing an additional avenue for revenue growth. Crossroads Centre offers a rare combination of best-in-market location, excellent property condition with significant recent capital improvements, diverse mix of retail service tenants, and a substantial value-add opportunity. The Property is being offered free and clear of debt and well below replacement cost for a 7.75 percent cap rate totaling $3,105,000.