265 Peace Rd
Sycamore, IL 60178
Unanchored Neighborhood Strip Center · Retail Property For Sale

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a 100% occupied neighborhood strip center located in Sycamore, Illinois. With an average suite size of 2,000 square feet, this retail property features a mix convenience-based retailers that are the lifeblood of this asset class. Positioned at a signalized intersection, across the street from Sycamore’s primary grocery store, the underlying fundamentals of the real estate would be impossible to recreate elsewhere in this market and would certainly cost more than the $155 per square foot that comprise the asking price.
All tenant leases feature annual increases, ranging between 2% and 4%, building in incremental upside that should compound over a new owner’s hold period. Average in-place rents are strikingly low as well. The liquor store on the endcap is paying below $12 per square foot gross, while the nail salon tenant in an interior suite is paying $25 per square foot. This indicates what is achievable at this property as the next owner will have the opportunity to either enjoy fixed annual increases from existing tenants, or mark rents to market as leases roll.
Ownership sold the easternmost endcap unit to the tenant in 2012. As a result, the property is subject to an association which is also controlled by ownership. Control of the association will simultaneously be conveyed at the time of sale along with the subject property. The owner of the endcap pays 20% of overall common area maintenance expenses based on their pro rata share of the building.
Sycamore is a growing community sandwiched between the western suburbs of Chicago and Dekalb, the home of Northern Illinois University. With optimal average household incomes of $116,000 annually and a pronounced increase in new single family home construction, the demographics of this market continue to strengthen and further bolster service and convenience oriented neighborhood retail.