Inland Private Nets 148% Return with Sale of Illinois Supermarket

Inland Private Capital Corporation, a sponsor of 1031 tax deferred exchanges, sold Mariano’s Fresh Market in Vernon Hills, Illinois for $36.4 million. The sale was facilitated on behalf of one of its 1031 investment programs.

Located at 1720 North Milwaukee Avenue in Vernon Hills, an affluent suburb about 35 miles north of Chicago, the 71,248-square-foot building is situated on a total land area of approximately seven acres. Constructed in 2011, the property is 100 percent leased to Roundy’s Supermarkets Inc., which was purchased by Kroger Co. late last year.

“The sale of the Vernon Hills location was our second Mariano’s disposition this year, both of which resulted in a substantial return for our investors,” said Keith Lampi, president and chief operating officer of IPCC. “We began purchasing Mariano’s locations on behalf of investors beginning in 2011, and as early adopters of what has been the fastest-growing grocery brand in the Chicagoland area, our investors are now reaping the benefits through monetization.”

The property was originally purchased in February 2013 for $27.9 million, according to a filing with the Securities and Exchange Commission. The company said that coupled with cash flow generated during the holding period, the sale resulted in a total return to investors of 148.48 percent (calculated based on the aggregate amount of original capital invested in the property).

In addition, the sale resulted in a 14.05 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 properties for 1031 tax deferred exchanges, as well as opportunities for accredited investors who are seeking a real estate investment. As of July 31, 2016, IPCC had sponsored 191 private placement programs. The 191 private placement programs include 488 properties, comprised of more than 29 million square feet of gross leasable area for a total offering price in excess of $5.9 billion.

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