Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a single tenant Strack & Van Til Grocery Store located in Valparaiso, Indiana. Strack & Van Til is a wholly owned subsidiary of Hy-Vee, following Hy-Vee’s acquisition of Strack in April of 2024. The Strack acquisition marks Hy-Vee’s first significant expansion into Indiana and the larger Chicagoland MSA. This location has been a grocery store since 1978 and serves a wide-ranging trade area in Northwest Indiana. The tenant has over 11 years of lease term remaining and is currently paying $8.20 per square foot in base rent, with a a 10 percent rent increase coming in three years. There’s another 10 percent rent increase five years after that, followed by an additional 10 percent rent increase three years later in the tenant’s next renewal option. It’s an attractive and rare cadence to the increase structure. Offered for purchase at a 6 percent cap rate, the in-place return increases 60 basis points as a result of the pending rent increase. Even more compelling, the asking price per square foot is only $136, largely due to the affordable rent. The lease is double net, but the tenant is obligated to reimburse for capital replacements such as the roof and asphalt, provided that cost is amortized over the useful life of the system. Positioned at a signalized intersection on US Highway 30, the property is visible to more than 30,000 vehicles per day. The tenant also benefits from an internally illuminated pylon sign. Starbucks and McDonald’s both operate drive-thru locations on separately owned outparcels, and Marcus & Millichap is simultaneously marketing the small shop retail component of the larger Coolwood Plaza, including a 9,500-square-foot multi-tenant retail center positioned on a padsite. Northwest Indiana has experienced precipitous growth over the last two decades due to its proximity to Chicagoland, while offering a more pro-business economic climate and lower overall cost of living to its residents. Valparaiso is a college town, with abundant amenities and desirable demographics for retailers. Please reach out to Marcus & Millichap with interest in either this single tenant Strack & Van Til Grocery Store opportunity, or in Coolwood Plaza, which can be purchased as an intact food and drug anchored retail center.