7202 W College Dr, Palos Heights, IL 60463
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Tiffany Square, a 34,124 square-foot, multi-tenant retail center located in Palos Heights, IL, about 9 miles south of Chicago. The shopping center is well occupied by a mix of resilient, service oriented tenants, all of whom have demonstrated commitment to the location. Priced at a 9.5% CAP rate, Tiffany Square is likely to cash flow at over 15%, at list price, with current pricing in the capital markets. The building is well sighted, just off a signalized intersection with visibility to Harlem Avenue (37k vehicles per day) and College Drive (18k vehicles per day), for a combined average daily traffic count of 55,000 cars. With a population of over 80,000 people within a three mile radius and average household incomes of $83,813 annually, the demographics in the area very much support this retail use.
Leasing activity at this property is consistently strong and tenants who leave are quickly backfilled with replacement tenants at similar or higher rents. Even during the last few months of COVID related turmoil, several new leases have been signed in the last three months while certain existing tenants have exercised renewal options. Ownership does all the leasing themselves which is a sign that demand for this kind of space in the submarket is very high. Lease rates are deeply below market and a new owner could add value by slowly transitioning tenants to NNN leases as gross leases expire, while still keeping rents low and limiting exposure to lease roll.
There is no doubt that COVID has had an effect on Tiffany Square and properties like it, but this is an excellent opportunity to purchase a retail asset at an elevated cap rate, well below replacement cost, and to stabilize the rent roll as we all come out of the pandemic. This is a location with a proven need for this type of essential retail service, and a new owner could either enjoy an above market return or stabilize the rent roll and sell the property at a substantial profit.
Please contact Marcus & Millichap with additional questions about Tiffany Square.
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Tiffany Square, a 34,124 square-foot, multi-tenant retail center located in Palos Heights, IL, about 9 miles south of Chicago. The shopping center is well occupied by a mix of resilient, service oriented tenants, all of whom have demonstrated commitment to the location. Priced at a 9.5% CAP rate, Tiffany Square is likely to cash flow at over 15%, at list price, with current pricing in the capital markets. The building is well sighted, just off a signalized intersection with visibility to Harlem Avenue (37k vehicles per day) and College Drive (18k vehicles per day), for a combined average daily traffic count of 55,000 cars. With a population of over 80,000 people within a three mile radius and average household incomes of $83,813 annually, the demographics in the area very much support this retail use.
Leasing activity at this property is consistently strong and tenants who leave are quickly backfilled with replacement tenants at similar or higher rents. Even during the last few months of COVID related turmoil, several new leases have been signed in the last three months while certain existing tenants have exercised renewal options. Ownership does all the leasing themselves which is a sign that demand for this kind of space in the submarket is very high. Lease rates are deeply below market and a new owner could add value by slowly transitioning tenants to NNN leases as gross leases expire, while still keeping rents low and limiting exposure to lease roll.
There is no doubt that COVID has had an effect on Tiffany Square and properties like it, but this is an excellent opportunity to purchase a retail asset at an elevated cap rate, well below replacement cost, and to stabilize the rent roll as we all come out of the pandemic. This is a location with a proven need for this type of essential retail service, and a new owner could either enjoy an above market return or stabilize the rent roll and sell the property at a substantial profit.
Please contact Marcus & Millichap with additional questions about Tiffany Square.