Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a 100% occupied, four-tenant retail property located in Chicago’s desirable Andersonville neighborhood. Wedged at the signalized intersection of Clark & Bryn Mawr, this offering is the ground floor retail component of a mixed-use condominium building. With an ideal mix of service-oriented retailers, the tenants include Rosin Eyecare, Orange Shoe Fitness, Apothecary EO and The Dropped Stitch. Rosin Eyecare was purchased by Luxottica, the Italian eyewear conglomerate, in 2022. Orange Shoe Fitness is a multi-unit personal training and gym concept with 3 locations in Chicagoland and 8 locations in Wisconsin. Apothecary EO opened earlier this year, selling a wide selection of sustainable skincare products, while also offering a full suite of med spa and esthetician services. Most recently, The Dropped Stitch has signed a lease on a small 600 square foot space, selling crafting tools, gifts, books and high-quality yarn, as well as conducting knitting classes on the premises, making them a true experiential retailer. The rent roll is stabilized, with a weighted average lease term of over 4.5 years. All leases feature strong annual rent increases, and the tenants reimburse all operating expenses, including a partial recovery of third-party management fees. At the asking price, a new owner can anticipate their Year 2 Cap Rate will increase by 16 basis points due to this rent increase structure. Moreover, the legacy tenants who took occupancy approximately 10 years ago, are paying well below market rents, so there’s long-term upside that can be achieved as a result. Andersonville is one of the most sought-after neighborhoods on Chicago’s north side and this location is definitionally prime. The property is positioned on Clark Street, at a stoplight, across the street from a McDonald’s drive-thru, and is highly visible to the pedestrian foot traffic that dominates this retail corridor. Demographics in this area are youthful and upwardly mobile, with exceptional density of 76,000 people within 1-mile, and average household incomes that exceed $100,000 annually. With a mix of hipsters and families, overall real estate values in Andersonville have risen precipitously over the last 10 years and the established mix of local retailers, restaurants, bars, and coffee shops that draw people to this neighborhood have all benefited as a result.