Investment Overview

Marcus and Millichap is pleased to present for your acquisition review Gateway Shoppes at Five Points in Urbana, IL. The Gateway Shoppes is comprised of two multi-tenant strip centers and is positioned on 4.6 acres of land right on the corner of E University Ave & Highway 45 which bring a combined 35,400 vehicles past the site every day. The center sits under a mile away from the University of Illinois campus in Urbana. U of I currently has almost 60,000 students enrolled. It is also situated right down the road from the Carle Foundation Hospital, which holds 827 beds and employs more than 1,000 doctors and advance practice professionals. Several other retailers in the immediate area also draw traffic to the location. These retailers include Schnucks, Niemann Foods, McDonald’s, Arby’s, Wendy’s, Walgreens, Panda Express, Jimmy Johns and several others. Gateway Shoppes is currently 95 percent occupied with a strong mix of local and national, ecommerce resistant tenants. The tenant lease expiration dates are staggered, protecting a prospective purchaser from a high vacancy risk due to several tenants leaving around the same time. 62 percent of the center is leased through 2023 at least, and the center’s largest tenant, Tricoci University, is leased into the summer of 2027. The gross lease nature of tenants in an area surrounded by NNN leased properties makes backfilling vacant units very achievable as shown by the center’s history of high occupancy and provides additional upside in converting leases to NNN. The property sits in the middle of the Champaign-Urbana metro area, which is home to over 220,000 people. 132,757 people live within the 5 miles surrounding the center. The average household income of that area is $68,723. The cities’ employment is led by the university and the Carle Hospital group which will continue to bring work to the area for generations to come.