Separate deals in Orland Park and Elgin underscore investor demand for assets in established commercial corridors
Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, today announced it has brokered two separate retail center sales in the Chicago suburbs of Orland Park and Elgin that collectively traded for approximately $27 million. Both properties received multiple offers and closed near listing price.
Anchored by Chipotle and Panera, the retail center at 15011-15081 S. La Grange Road in Orland Park sold for $17.6 million. The property consists of three freestanding, single-tenant, net-leased buildings and one multi-tenant building, totaling 20,732 square feet of leasable space. Newly constructed on the site of a former Toys ‘R’ Us store, the center is fully occupied by national tenants including BJ’s Brewhouse, Raising Cane’s and Smashburger.
The 24,000-square-foot Galleria of Elgin, located at 3091 W. Route 20, sold for approximately $9.52 million. The property’s two buildings house a mix of national, regional and local businesses, including Dairy Queen, Edward Jones Investments, Country Donuts, Maciano’s Pizza and Pastaria and Sammy’s Mexican Grill and Bar. Approximately 80% of the leaseholders are original tenants that have been occupying space at the center since 2015 or earlier.
Marcus & Millichap’s Sean Sharko and Austin Weisenbeck, senior managing directors investments in the firm’s Chicago Oak Brook office, represented the sellers of both properties.
“The fundamentals of the two sales were really polar opposites, which shows the diversity of deals in the current market,” said Sharko. “With the Orland Park center, it’s new construction and multiple buildings, including drive-thru fast-casual restaurants, and all national credit tenants, whereas the Galleria of Elgin is a modern Class A property with a large volume of long-term tenants, most of which are local mom-and-pop and regional retailers.”
“These transactions demonstrate the strong investor appetite for well-located, multi-tenant retail centers in the Chicago suburbs, where vacancy rates continue to be at or near a decade-plus low,” added Weisenbeck.
Sharko and Weisenbeck are part of the Sharko, Weisenbeck, Mendoza Group, a Chicago-based brokerage team specializing in the sale of retail, medical, mixed-use and net-leased investment real estate throughout the country. Collectively, the team has closed in excess of $3.3 billion worth of transactions across 34 states since 2005.
About Marcus & Millichap (NYSE: MMI):
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2021, the company had 1,994 investment sales and financing professionals in 82 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 13,255 transactions in 2021, with a sales volume of approximately $84.4 billion. For additional information, please visit www.MarcusMillichap.com.
