Centennial Plaza

Addison, IL

Offering Summary

  • Status: accepted offer
  • Price: $15,855,000
  • CAP: 8.25%
  • GLA: 115,456 SF
  • Net Operating Income: $1,308,072
  • Price/SF: $137.33
  • Year(s) Built: 1996
  • Year(s) Renovated: 2004
  • Lot Size (Acres): 9.85 Acres
  • Major Tenants: XSport Fitness, Biolife Plasma Services, Laser X, Dance Xplosion
  • 90.6% Occupied, 115,456 SF Shopping Center in Addison, IL (Chicago Suburb) with WALT of 8.0 Years
  • Anchored by XSport Fitness (34% of GLA) on 15-Year NNN Lease thru Jan 2034 – New Tenant in 2019
  • Addison Location Ranks #6 (Top 20%) Out of All XSport Locations for Customer Traffic with 291,000  Customer Visits in the Trailing 12 Months (Source: Placer.AI)
  • XSport Fitness is a Regional Fitness Chain with 30 Locations Across Chicagoland & 8 Locations in D.C. and NYC
  • Over $1.3 Million in Capital Improvements Since 2015 Including New Roofs, Parking Lot Overlay, Façade Renovation, LED Lighting, and More; Minimal Exposure to CapEx in the Near-Term
  • XSport Fitness is Open 24/7 and Has a Substantial Build Out Including 4-Lane Lap Pool, Hot Tub, Basketball Court, Sauna, Rock Climbing Wall, Children’s Play Area, and More $2.7M Investment by Tenant into Build-Out
  • Offers Year 1 Cash-on-Cash Return of 12.6% and 10-Year Leveraged IRR of 20.5% at Proposed  Financing Terms
  • Dense, Affluent Demographics with 10,677 Residents in a 1-Mi Radius, 81,221 Residents in a 3-Mi Radius, and 1-Mi AHHI of $106K
  • DuPage County Location – #1 out of 99 Illinois Counties for Best Schools, Best for Families, Best to Live
  • New 10-Year NNN Lease with BioLife Plasma (14% of GLA) in 2019 – Investment-Grade Rating of “Baa2” (Moody’s)
  • Staggered Lease Expirations and Long-Term Tenancy with 55% of Center’s Total GLA Leased Into 2029 or Beyond; WALT of 8.0 Years
  • Nearly All Tenants Subject to NNN Leases and Many with Reimbursement of Mgmt or Admin Fees
  • Diversified, E-Commerce-Proof “Daily Needs” Tenant Base with Small-Shop Tenants Including Medical/Dental, Restaurants, Salons, Dry Cleaning, Car Wash, Bank, and Dance Studio
  • Upside via Lease-Up of Two Vacancies Totaling 10,846 SF – One 10,000 SF Unit and One 846 SF Small-Shop Space
  • Efficiently-Run Center with NNN’s Under $3/ SF and Strong Reimbursement of Landlord Operating Expenses
  • Offering Includes Freestanding Brunch Café Restaurant (9-Unit Operator) with NNN Lease Thru August 2029
  • Located Along Highly-Trafficked Arterial W Lake St with 28,000 VPD and Just 0.5-Mi South of I-355 Exit Ramps with 150,000 VPD
  • Infill Location with Geographic and Financial Barriers to Entry – Priced Below Replacement Cost at $137/SF
  • Within Close Proximity to Walmart, Sam’s Club, and Aldi Located Adjacent to the Exit Ramps and Driving Major Traffic to the Area
  • Chicagoland MSA – Largest MSA in the Midwest and 3rd Largest in the U.S. with a Population of 9.8 Million Residents Across 14 Counties in 3 States; Highly Diversified Economy Home to 31 Fortune 500 HQ’s and HQ’s for Another 370 Major Corporations

Scott Wiles

Senior Managing Director