The Food 4 Less Shopping Center in Melrose Park, Ill.Melrose Park, Ill. — An investment partnership comprised of Chicago-based Origin Capital Partners and Newgard Development has completed the disposition of the 113,624-square-foot Food 4 Less Shopping Center in Melrose Park, Ill. The property was acquired by a national REIT Cole Real Estate Investment Inc., according to Chicago media reports, for $17.75 million. The asset is the first property bought and then sold by the firm's first value-add fund.
The Food 4 Less Shopping Center property, at the intersection of North Avenue and 25th Ave., includes 113,624 square feet of grocery-anchored and inline retail space as well as free-standing outparcels. Food 4 Less, owned by Kroger Co., occupies 65,439 square feet of space. Inline retail space totals 30,076 square feet with tenants that include Starbucks, FedEx and T-Mobile. The Center also includes outparcels occupied by 5/3 Bank and a gas station. A third outparcel will be occupied by Advanced Auto upon completion of a 14,040 square foot Super Hub distribution and retail building.
Origin and Newgard purchased the property from MB Financial Bank, in February 2011. At the time of acquisition the property was 88 percent leased. Since acquiring the property, occupancy increased to 95 percent, with 6,349 square feet of positive absorption, and a lease was executed with Advanced Auto for a build-to-suit on 1.6 acres of land.