DeKalb Market Square - Mid-America Real Estate Group

DeKalb Market Square
Northeast Quadrant of Sycamore Road and Greenwood Acres Drive
DeKalb, Illinois
For further information contact owner’s exclusive representatives
Ben Wineman
(630) 954-7336
bwineman@midamericagrp.com
DeKalb Market Square offers a purchaser the opportunity to acquire a regional center shadow anchored by
separately owned Kohl’s, Lowe’s, and Walmart Supercenter serving DeKalb, IL and its surrounding communities.
INVESTMENT CONSIDERATIONS
Mid-America Real Estate Corporation has been retained on behalf of the owner to sell the 100% fee simple interest in DeKalb
Market Square. DeKalb Market Square is a quality asset and an attractive real estate investment based on the following compelling
attributes:
• National Credit Leases – DeKalb Market Square is 100%
leased to Petco, Best Buy, Dollar Tree, Ulta, MC Sports, and
Sally Beauty Supply, each of which boast corporate leases.
Furthermore, five of the six tenants have operated at the center
since its inception and 97.8% of the GLA have leases that
extend into 2020 or beyond. This should provide the investor
with a stable income stream throughout the holding period.
• Surrounding Demographics – The subject property enjoys
a captive audience along the primary retail corridor of
Sycamore Road. The retail corridor serves residents not only
in the City of DeKalb but also the residents in the surrounding
communities of Sycamore, Malta, and Cortland. Within a 10mile radius there are approximately 80,935 residents with
average household incomes of $66,642.
• Dominant Shadow Anchors – The subject property benefits
from being shadow anchored by a Walmart Supercenter,
Lowe’s Home Improvement, and Kohl’s. Carmike Market
Square 10 Theater, one of DeKalb’s two only movie theaters,
also sits adjacent to DeKalb Market Square further drawing
customers to the shopping center.
• Dynamic Economy –DeKalb is most well known for being
the home of Northern Illinois University, located less than 3
miles southwest of DeKalb Market Square. Northern Illinois
University is not only the leading employer in DeKalb, it is
also home to more than 20,000 students making it the 2nd
largest university in the State of Illinois. DeKalb Market
Square benefits from the many recurring and new customers
created by Northern Illinois University. Other top employers
in DeKalb include health and social services, manufacturing,
and retail trade corporations.
• Irreplaceable Location – DeKalb Market Square is
strategically positioned at DeKalb’s main-and-main retail
intersection of Sycamore Road (21,500 VPD) and Barber
Green Road, located approximately 60 miles west of
downtown Chicago. The site offers excellent visibility, access,
and consumer traffic to the retail center.
LOCATION & MARKET
PROPERTY DESCRIPTION
DeKalb is approximately 60 miles west of the city of Chicago and is
home to Northern Illinois University, a 756-acre campus with more
than 20,000 students making it the second largest university in the
State of Illinois, demonstrating that the city is fundamentally different
from the Chicago suburbs. The city is located along the thriving
Interstate 88 corridor enabling the city to be easily accessible to the
Chicagoland area while maintaining its own unique character as a
university community. Starting in the mid-1800’s, DeKalb’s central
location enabled the city to become a thriving center of agriculture by
facilitating shipment to larger markets. Agriculture remains as one
of DeKalb’s primary industries. Monsanto, a leading global provider
of agricultural products and technology based solutions that improve
farm productivity and food quality, came to DeKalb in 1996 when
it purchased the longstanding DeKalb AgResearch Corporation.
Monsanto still maintains a large production plant in DeKalb today. In
addition to agriculture, DeKalb features a diverse economy strong in
the areas of education, health and social services, manufacturing, and
retail trade. Due to DeKalb’s accessibility to I-88, large distribution
centers such as Target, 3M, and Nestle, and high tech companies
such as Monsanto, LMC Adiabatic, and Sonoco Alloyed have located
themselves in the DeKalb area. Northern Illinois University is the
City’s leader in employment supplying over 8,000 jobs. Other top
employers include KishHealth System (1,400 employees), DeKalb
School District (885 employees), 3M Distribution Center (538
employees), and DeKalb County Government (525 employees).
DeKalb Market Square is situated on 8.4 acres and contains a total of
69,136 square feet of leasable area. Constructed in 2005, the subject
property has been well maintained, ensuring little to no capital
expenditures in the near future. The center features ample surface
parking for approximately 370 vehicles (not including the additional
parking providing on the adjoining, separately owned Kohl’s lot) for
5.35 spaces per 1,000 square feet of leasable area. Primary ingress and
egress to the site is provided by roadways coming off of the heavily
trafficked thoroughfare, Sycamore Road, where 21,500 vehicles pass
by the site per day. Additional access to the property is also provided
by cross easements with the neighboring, but separately owned,
125,000 square foot Lowe’s Home Improvement store and 202,000
square foot Walmart Supercenter store. Due to DeKalb Market
Square’s good exposure and convenient access points, the shopping
center experiences high customer traffic from the City of DeKalb and
surrounding communities.
The retail corridor in DeKalb is on Sycamore Road and it serves as
the primary retail option for communities east of Interstate 39, west
of Highway 47, and draws from approximately 20 miles north and
south of DeKalb. Retail in DeKalb is essential to the residential
communities of Sycamore, Malta, and Cortland which are within five
miles of DeKalb and lack options. This retail corridor includes such
national big-box retailers as Walmart Supercenter, Target, Lowe’s,
Kohl’s, Best Buy, TJ Maxx, JC Penney, Carson’s, Michaels, Menards,
and Jo-Ann Fabrics. The trade area caters to the appealing wide
demographics of the area – approximately 112,436 residents within
a 15-mile radius of the property with an average household income
of $73,477.
Radius from Subject
5 Mile
10 Miles 15 Miles
2014 Population
2014 Households
61,318
23,314
80,935
30,554
112,436
42,443
2014 Average Household Income
2014 Median Household Income
2014 Per Capita Income
2014 Median Age
$61,373
$51,817
$23,799
30.9
$66,642
$56,970
$25,513
32.0
$73,477
$63,209
$27,999
34.5
TENANCY
DeKalb Market Square is a 100% occupied regional center featuring
corporate leases with Petco, Best Buy, Dollar Tree, Ulta, MC Sports,
and Sally Beauty Supply. Each of the tenants, except for Ulta, have
operated at the center since its inception. Ulta was new to the center
in 2012, and Best Buy, Petco, Dollar Tree, and MC Sports all recently
renewed their leases to remain at DeKalb Market Square into 2020
(Best Buy, Dollar Tree, and MC Sports) and 2024 (Petco). Each of the
leases at the center provide for future option renewal terms and rental
rate increases. The tenants at DeKalb Market Square further benefit
from being shadow anchored by a separately owned Kohl’s, Lowe’s
Home Improvement, and Walmart Supercenter. DeKalb Market
Square has been able to attract and retain its tenants through the draw
of a strong shadow anchor tenants and an irreplaceable location.
PRICING
DeKalb Market Square is being offered without an asking price.
Ownership understands the strength of the current investment market
and anticipates buyers will value the property using an aggressive
analysis of net operating income and a current market capitalization
rate for this retail offering.
FY 2016 In-Place NOI:
$836,315
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.
References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
For further information
exclusive representatives.
contact
owner’s
Ben Wineman
(630) 954-7336
bwineman@midamericagrp.com
CLICK HERE to go to Property Website
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