Case Study: Randhurst Village Lifestyle Center in Mount Prospect, Illinois
Tuesday, May 10, 2016
Acquire Real Estate partnered with DLC Management Corp. — one of the nation’s largest private owners of retail real estate — to offer an investment opportunity in the Randhurst Village lifestyle center, a 1 million square foot retail center located 20 miles northwest of Chicago in Mount Prospect, Illinois. With a shorter hold period (3-5 years), a 92% occupancy rate and a projected 7-9% average annual return, Randhurst Village was chosen as Acquire’s first 506(c) offering. The platform pre-funded its $1.09 million investment in the property and has retained a piece of the investment for its own portfolio.
Current In-Place Cashflow: Acquire was initially drawn to the property’s impressive lineup of 53 creditworthy tenants; the majority of these tenants remain on long-term leases and generally produce outstanding sales volume at the property. With anchors like Costco, Home Depot, Jewel-Osco, AMC Theaters and a separately owned Hampton Inn, Randhurst Village offered the security of consistent in-place cashflow as well as a potential value-add opportunity through the development of additional retail space. These factors were the first to align with Acquire’s strict investment criteria.
Trophy Quality Asset: Randhurst Village also ranks among the premier lifestyle centers in the Midwest; week in and week out, the center remains a popular destination for shopping, dining and entertainment. Originally built as Chicagoland’s first enclosed mall, the Class A retail center was completely redeveloped in 2012 into the trophy quality asset it is today. Now home to over 1 million square feet of retail and restaurant space, contemporary office suites and attractive tree-lined streets, Randhurst Village has positioned itself as the leading lifestyle and entertainment hub for the extended region.
Location: The center’s exceptional location also made it an attractive investment for Acquire. Situated in the heart of a dense and affluent trade area, Randhurst Village is passed by over 70,000 vehicles each day; the property is also accessible to both Interstates 90 and 294. Approximately 330,000 residents live within a five-mile radius of the property with an estimated average household income of $85,000. This figure is almost 40% higher than the national average ($52,000) and positions the surrounding area as one of the wealthiest in the United States. As a result of the property’s strategic location and strong tenant occupancy (92%), Randhurst Village consistently enjoys excellent sales volume—another important investment criteria for the Acquire platform.
Randhurst Village is still open for investment and continues to hit its projected 7-9% average annual returns. With its strong credit tenancy, excellent location and value-add opportunity, Acquire believes the property remains an excellent investment opportunity for the Acquire platform.
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“Randhurst Village is consistent with our strategy of investing in trophy quality assets with a diverse tenant mix and additional value-add opportunities,” said Josh Klimkiewicz, President of Acquire Real Estate.“Plus, at a total transaction value of $113 million, it’s currently one of the largest real estate crowdfunding opportunities in the U.S. We’re thrilled to be able to offer this type of opportunity to our investors.”
About Acquire Real Estate
Acquire Real Estate (https://www.acquirerealestate.com/) provides public access to the real estate private placement business, bringing institutional-quality deals to the accredited investor. The New York firm uses its expertise and vast knowledge of the space to pool investors, and offer them direct access to quality commercial real estate deals.
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