West Dundee, IL – November 30,2015 – Lee & Associates, one of the largest national commercial real estate providers with regional expertise, has completed the investment sale of a 19,000 square-foot retail building leased to Petco Animal Supply, the second-largest US retailer of specialty pet supplies. The property was located in West Dundee, Illinois (42 miles from Chicago) across the street from the 1.1 million square foot Spring Hill Mall that is slated for redevelopment in the near future.
At the time of the purchase, just over three years remained on the lease with Petco whom originally signed a 15 year double Net (NN) lease term back in 1997. Consequently, Petco signed a new six-year lease renewal at the end of that tern in 2012 and kept in place their two (5) year renewal options.
Ryan Barr and Ryan Bennett, principals of Lee & Associates – North San Diego County and founders of Barr & Bennett Net Leased Investment Group represented both the seller, Wood Stone Dundee, LLC and the buyer MNG Management, LLC. The buyer purchased the single tenant net leased property for $2,420,000 which equated to an 8.24% capitalization rate.
“This particular property allows an investor to enjoy a solid short term revenue stream while considering various potential redevelopment options if necessary, due to the property’s excellent location.” stated Bennett. The location across from the mall paired with the continued efforts from the City of West Dundee to improve the trade area, should ensure this property remains high in demand amongst retailers” said Barr.