4,460 Square Foot Retail Space For Sale @ 2811 Grand Ave

Greenstone Partners has been exclusively retained to offer the fee-simple interest in the Waukegan Retail Center located at 2811-2817 West Grand Avenue (“the Property”) in Waukegan, IL (Lake County), a northern Chicago suburban community. The 4,460 rentable square foot retail asset is currently fully leased to three established tenants, Juan’s Hair Salon, Big Daddy Liquors and Dotty’s Café. Both the liquor store and hair salon have occupied their spaces since the building was delivered in 2008 and further demonstrating their commitment to this location, both tenants recently renewed their leases for an additional five years. Dotty’s Café, a national tenant with more than 175 locations just signed a six year lease and consequently there is no lease rollover until May of 2019 or later.

At the offering price of $1,132,500, the Property offers initial year-one returns of an 8.00% cap rate and 10.72% cash-on-cash return, based on 70% Loan-to-Value, 4.75% Interest Rate, and 25 Year Amortization. The return quickly jumps to a 8.31% cap rate and 11.74% cash-on-cash return in year three and a 8.69% cap rate and 13.00% cash-on-cash return in year five given that all tenants have solid annual rental escalations. The Property was has been underwritten with a five-percent economic vacancy. The investment allows for passive ownership as all tenants are under a net-lease structure, with tenants assuming responsibility for reimbursing CAM, RE Taxes and Management.



Location Description:
Waukegan is a city and the county seat of Lake County, Illinois, United States. As of the 2012 census estimate, the city had a population of 94,267. It is the ninth-largest city in Illinois by population. It is the fifth-largest city on the western shore of Lake Michigan, after Chicago, Milwaukee, Green Bay, and Kenosha. Waukegan is on the shore of Lake Michigan, about 8 miles south of the border with Wisconsin and 40 miles north of downtown Chicago. The top employers in Waukegan in 2013 are medical, education, shipping and manufacturing, and government. The median age of residents living in Waukegan is 30.5. Waukegan is more accessible than most suburban villages of Chicago as it is host to an Airport, Harbor, major interstate I-294 and Route 41, along with Metra rail service. Waukegan National Airport has reached prominence as a base of operations for "Chicagoland's Fortune 500 Flyers." Its centralized location between Chicago and Milwaukee lends expediency to the business traveler as the North Shore's Corporate Aviation Headquarters. Its capabilities include a 6,000 foot runway, Instrument Landing System, Manned Air Traffic Control Tower, and even a US Customs office which provides clearances for direct international arrivals. Waukegan has a port district which operates the city harbor and regional airport. The Marina provides services and facilities for recreational boaters while the Industrial port provides access for 90–100 large shipping vessels yearly. Metra provides service between Waukegan and downtown Chicago via the Union Pacific/North Line. Service runs daily from early morning to late evening. Pace provides public bus service throughout Waukegan and surrounding areas. Downtown Waukegan is the urban center of Lake County. Many restaurants, bars, shops, the Waukegan Public Library, the College of Lake County, the Lake County Courthouse (including the William D. Block Memorial Law Library), and much more call Downtown Waukegan their home. Every third Saturday of the month, downtown Waukegan hosts the ArtWauk, an event that features paintings, films, performance art, and music. Waukegan is also home to large retailers such as Gurnee Mills and Pleasant Prairie Premium Outlets, as well as family entertainment at the Waukegan Marina on Lake Michigan, Six Flags Great America, and Key Lime Cove Indoor Water Park.

Highlights:
■ All leases are net-leased and have annual rental escalations
■ Located on Grand Avenue, a major E/W retail thoroughfare
■ Built in 2008 with leases at current market rate levels
■ Solid cashflow: 8.00% cap rate & 10.72% cash on cash return (with 5% vacancy)
■ Bite Sized Opportunity: Only $340,000 (30%) of equity required as a down payment
■ Newer construction, three tenant, net-leased tenanted retail center
■ Directly across from The Field House Sports and Fitness Center, an 80,000 SF state-of-the-art indoor sports and fitness facility