Investment Overview

Marcus & Millichap is pleased to offer the opportunity to purchase the fee simple interest in a 22,900-square foot retail center located at 1700 Algonquin Rd, Mount Prospect, IL. Positioned betwixt three signalized intersections, the property features exposure to over 50,000 vehicles per day. The site is 74 percent occupied and priced at an 8.15 percent CAP Rate on the in-place Net Operating Income, with room to push the CAP over 10 percent by leasing the vacant space at a modest rent. All tenants are on true triple net (NNN) leases, reimbursing for their pro rata share of Real Estate Taxes, CAM, Insurance, Management, and Administrative Fees. Current rents average out below $12 per square foot and most tenants do not have fixed rents in their option periods, allowing a new owner to continue pushing rents higher. The majority of leases also feature above market rent bumps and there’s a history of enforcement of both increasingly higher rents, as well as full collection of pass-thru expenses. The demographics surrounding the property are especially dense, with 100,000 people and average household income of $113,000 within a three-mile radius. The site is well-trafficked, with unrestricted ingress/egress onto Algonquin and Dempster St. In addition to the return metrics, the $130 asking price per square foot is far below where other retail properties currently on the market are priced. This is a unique opportunity to purchase a value-add retail center at a great basis and with significant in-place cash flow.