IRVINE, Calif., November 18, 2015 – Faris Lee Investments, a leading national retail advisory and investment sales firm, has completed the $7.1 million sale of The Shops at Deer Grove in Palatine, IL, a suburb of Chicago. The fully occupied property completed construction this year and totals 11,800 square feet. Tenants include Starbucks with drive-thru, Menchies Frozen Yogurt, Pie Five Pizza, AT&T, Jersey Mikes Subs and Chipotle Mexican Grill.
Matthew Mousavi and Patrick Luther of Faris Lee Investments represented the seller, an Illinois-based private developer, as well as the buyer, a Wisconsin-based private investor. The transaction closed at nearly $602 per square foot and a cap rate of 6.1 percent, a record-low rate for comparable strip centers in the Chicago area.
“We focused our marketing efforts on our proprietary database of national and international 1031 exchange buyers and principal investors,” said Mousavi. “Ultimately, we garnered four offers on a best-offer basis with a Midwestern private investor providing the strongest price.”
Situated on nearly 1.5 acres, The Shops at Deer Grove is ideally located at the signalized entrance to Deer Grove Center, a 500,000-square-foot power center that includes Walmart, Target and Home Depot, among others. The property draws from an excellent demographic trade area with more than 259,600 consumers living within a five-mile radius.
About Faris Lee Investments: Faris Lee Investments is a leading retail advisory and investment sales firm. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee's senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.