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Shopping Community

Canterbury Shopping Center | Grocery Anchored Value-Add

2959 W 159th St, Markham, IL 60428

Listing Price: $8,500,000

Gross SF
235,786
Rentable SF
235,786
Price/Gross SF
$36.05
Lot Size
26.81 acres
Year Built
1961

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Canterbury Plaza, a grocery anchored, value-add retail center located in Markham, Illinois. Anchored by Fairplay Foods, dd's (Ross Dress-4-Less) Discounts, and Cititrends, this approximately 231,000 square foot center is currently 66 percent occupied to a mix of junior box retailers and service oriented tenants occupying small shop space. Canterbury Plaza is located at the intersection of 159th Street and Kedzie Avenue. Positioned between multiple signalized intersections, the property offers multiple points of ingress and egress and benefits from exposure to over 45,000 vehicles per day. Population density within a three-mile radius is notably high for a suburban location, with over 90,000 people living within that radius. The property is also located 0.2 miles from the cloverleaf on and off ramp of I-294 (110,000 vehicles per day) and less than 1 mile from the on and off ramp to I-57 (20,000 vehicles per day). The strategic positioning of the real estate itself opens up a range of options at this location -- beyond retail -- that value-add investors should consider when evaluating Canterbury Plaza. Currently, the net operating income is slightly negative, as a result of the high amount of vacancy. However, at list price, the property is being offered significantly below replacement cost at a price per square foot of only $36. It would cost well over 5 times that number to build the property today, and simply signing leases on vacant space will enable a new investor to increase their return to a double digit cap rates, even after allowing for a healthy tenant and capital improvement budget. Leveraged returns, once stabilized, should approach 30 percent on a cash-on-cash basis. There are two additional outparcels, anchored by Dollar Tree, with a very healthy net operating income based on their current rent rolls that are also available for purchase that would provide positive cash flow to a new owner as they re-position Canterbury Plaza. Please contact Marcus & Millichap with additional interest.

Investment Highlights

  • Well located retail center, grocery anchored, currently leased to several strong, credit tenants with the ability to drive traffic to the property
  • 66 percent occupied and offered at far below replacement cost -- only $36 per square foot
  • High amount of upside in leasing the vacant space, ability to get to a double digit cap rate and nearly 30 percent cash-on-cash returns upon refinancing
  • Located between several signalized intersections at the corner of 159th and Kedzie -- exposure to over 45,000 vehicles per day
  • Only 0.2 miles from the on and off ramp to I-294 and less than one mile to the I-57 cloverleaf
  • Over 90,000 people live within 3 miles of the plaza
  • The property is currently assessed at a market value of $12M, well above the $8.5M asking price -- allowing a new investor to effectively protest the current real estate taxes upon a sale

Exclusively Listed By

Financing By

Shopping Community

Canterbury Shopping Center | Grocery Anchored Value-Add

Listing Price: $8,500,000

Gross SF
235,786
Rentable SF
235,786
Price/Gross SF
$36.05
Lot Size
26.81 acres
Year Built
1961

Investment Highlights

  • Well located retail center, grocery anchored, currently leased to several strong, credit tenants with the ability to drive traffic to the property
  • 66 percent occupied and offered at far below replacement cost -- only $36 per square foot
  • High amount of upside in leasing the vacant space, ability to get to a double digit cap rate and nearly 30 percent cash-on-cash returns upon refinancing
  • Located between several signalized intersections at the corner of 159th and Kedzie -- exposure to over 45,000 vehicles per day
  • Only 0.2 miles from the on and off ramp to I-294 and less than one mile to the I-57 cloverleaf
  • Over 90,000 people live within 3 miles of the plaza
  • The property is currently assessed at a market value of $12M, well above the $8.5M asking price -- allowing a new investor to effectively protest the current real estate taxes upon a sale

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Canterbury Plaza, a grocery anchored, value-add retail center located in Markham, Illinois. Anchored by Fairplay Foods, dd's (Ross Dress-4-Less) Discounts, and Cititrends, this approximately 231,000 square foot center is currently 66 percent occupied to a mix of junior box retailers and service oriented tenants occupying small shop space. Canterbury Plaza is located at the intersection of 159th Street and Kedzie Avenue. Positioned between multiple signalized intersections, the property offers multiple points of ingress and egress and benefits from exposure to over 45,000 vehicles per day. Population density within a three-mile radius is notably high for a suburban location, with over 90,000 people living within that radius. The property is also located 0.2 miles from the cloverleaf on and off ramp of I-294 (110,000 vehicles per day) and less than 1 mile from the on and off ramp to I-57 (20,000 vehicles per day). The strategic positioning of the real estate itself opens up a range of options at this location -- beyond retail -- that value-add investors should consider when evaluating Canterbury Plaza. Currently, the net operating income is slightly negative, as a result of the high amount of vacancy. However, at list price, the property is being offered significantly below replacement cost at a price per square foot of only $36. It would cost well over 5 times that number to build the property today, and simply signing leases on vacant space will enable a new investor to increase their return to a double digit cap rates, even after allowing for a healthy tenant and capital improvement budget. Leveraged returns, once stabilized, should approach 30 percent on a cash-on-cash basis. There are two additional outparcels, anchored by Dollar Tree, with a very healthy net operating income based on their current rent rolls that are also available for purchase that would provide positive cash flow to a new owner as they re-position Canterbury Plaza. Please contact Marcus & Millichap with additional interest.

Exclusively Listed By

Financing By

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