Investment Overview

Family Dollar has a long-seasoned history at this location with their initial double net lease starting over 40 years ago. Until just recently this was a multitenant building with Family Dollar occupying just 8,500 square feet of the 22,200 square foot building. They have expanded their footprint and now occupy the full 12,200 square feet of first floor space in addition to having control of the approximately 10,000 square feet of second floor space (currently sealed off and not in use) and an unfinished basement currently used for storage (approximately 7,936 square feet; not included in reported building size). This Family Dollar is located on the hard, signalized corner of 91st Street and Commercial Avenue. The location is just blocks away from the Chicago Skyway and South Shore Metra stop, on a prime retail corner of this South Chicago neighborhood, which is in the midst of a dense residential district with over 145,000 people residing within three miles and amongst many complimentary retailers including: Bank of America, McDonald’s, US Bank, Walgreens, Chase Bank, Dunkin’ Donuts, and many more. UPSIDE POTENTIAL An investor has the opportunity to capitalize on what could be a substantial increase to the net operating income in future years. After the property was purchased in 2017 the property was reassessed at a much higher value with the sales price of $1,265,000. Family Dollar is required to reimburse for property tax payments; however, their reimbursement is maxed out at 105% of the previous year. When the property was reassessed, the taxes went up drastically causing a major reduction to the NOI for the ownership when the tenant was not required to reimburse nearly enough. In theory, with a lower sales price of just $920,000 the next assessment may trigger a much lower property tax amount which would directly and proportionately increase the NOI for a new owner. Please consult with a professional to discuss.