Investment Overview

Marcus & Millichap is pleased to present for sale this Grocery and Medical Anchored Center in Schaumburg, Illinois. Located in Chicagoland’s premier suburb, this grocery and medical-anchored center benefits from being in Schaumburg, the second-largest economic development center in Illinois. Schaumburg is home to a vast array of businesses, boasting 9.5 million square feet of retail space, 12 million square feet of office space, and 13.5 million square feet of industrial space. The property is strategically positioned between IL-390 to the south and I-90 to the north, ensuring easy access and visibility. The area has a daytime population exceeding 150,000 people and is supported by a highly educated workforce. One of the key anchors of the center is KD Market, a popular Chicagoland grocer with five locations. KD Market has been a staple at this property for approximately 18 years and recently signed a 10-year lease extension with two five-year options. The new lease includes 3 percent annual rent increases, providing a strong hedge against inflation. KD Market also expanded its square footage by 73 percent in 2013, demonstrating its commitment to the location. The center enjoys a rare 13-year average tenant operating history, with four tenants having been at the center for 32 years. Six additional tenants have an operating history ranging from 15 to 26 years, and a total of 10 tenants have been at the center for over seven years. This long-standing tenant presence speaks to the stability and attractiveness of the property. The tenant mix at the center is complimentary and attracts a recurring customer base. Notably, 25 percent of the base rent is derived from medical tenants, with health and wellness tenants contributing 18 percent. Restaurant tenants account for 17 percent of base rent, while service tenants comprise 14 percent. A significant co-anchor tenant, DaVita Dialysis, operates 22 stations and is open six days a week. The majority of tenant leases include annual rent increases, adding to the property's financial resilience. Additionally, there is an opportunity to purchase a freestanding KFC ground lease, which is an outparcel to the center. The property boasts outstanding real estate fundamentals, sitting on a 12.81-acre lot with over 1,048 feet of frontage along Roselle Road. It features a large parking lot with approximately 700 surface spaces and offers six points of full ingress and egress. The center is positioned at two signalized hard-corner intersections, with 45,600 vehicles passing by daily at the Roselle Road and Wise Road intersection. The area is densely populated, with 116,674 people living within a three-mile radius, and the average household income in this radius exceeds $112,000.