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Inland Private Capital Corporation Sells Illinois Retail Property for $25 Million

Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, sold Mariano’s Fresh Market in Elmhurst, Illinois, for $25 million. IPCC, through its subsidiary which serves as asset manager, facilitated the sale of the property on behalf of one of its 1031 investment programs.

Located at 678 North York Road in Elmhurst, about 16-miles west of Chicago, the property contains a total land area of approximately six acres, with one single-story, stand-alone 75,922-square-foot retail building.

The property, which was constructed in 2013, is 100 percent leased to Roundy’s Supermarkets, Inc. On December 18, 2015, Kroger Co. purchased Roundy’s which includes such banners as Copp’s, Pick n Save and Mariano’s Fresh Market.

“This was a very successful investment for IPCC that resulted in a substantial return for our investors,” said Keith Lampi, president and chief operating officer of IPCC. “Investors purchased this asset in 2013, and it performed positively due to its strong location fundamentals and the credit enhancement resulting from the Roundy’s/Kroger transaction that occurred late last year.”

The property was originally purchased in October 2013 for $20.4 million.

Coupled with cash flow generated during the holding period, the sale resulted in a total return to the investors of 156.92 percent (calculated based on the aggregate amount of original capital invested in the property).

In addition, the sale resulted in a 22.34 percent average annual return (calculated using the cash flow from the property’s operations, the proceeds from the sale, and the duration of the hold period to determine an annualized rate of return, inclusive of all fees and expenses).

Inland Private Capital Corporation offers replacement property investments for persons participating in a 1031 tax deferred exchange, as well as opportunities for accredited investors who are seeking a real estate investment. As of May 15, 2016, IPCC has sponsored 188 private placement programs that include 484 properties with a total offering price of more than $5.9 billion.

Visit Inland Private Capital Corporation in The DI Wire’s directory here.