Chicago (June 2, 2023) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the $3.035 million sale of a single-tenant retail property occupied by Wendy’s. Built in 1983 and renovated in 2022, the 4,031-square-foot property is situated on .63 acres at 2811 North Narragansett Avenue in Chicago.
SRS NNLG’s Senior Vice Presidents Sean Lutz and Dan Elliot represented the seller, a California-based private investor. The all-cash buyer, a California-based private investor, was represented by Bruce Lee and Hope Kim of New Star Realty. The closing cap rate was 5.27% and the price per square foot was $753.
“This quick-service-restaurant opportunity in a dense retail corridor provides the new ownership with 20 years remaining on the absolute triple-net lease which translates into zero landlord responsibilities and a passive cash-flowing income,” said Lutz.
Lutz added, “Navigating Chicago’s new buyer transfer tax that the city has imposed for properties sold over $1 million has been a challenge. This transfer tax has the buyer responsible for paying $7.50 for every $1,000 in the sale. In order to ensure the closing of this Wendy’s store, the seller agreed to pay a small portion of the transfer tax. Due in part to this new tax, commercial real estate sales in Chicago have been down sharply over the last year.”
The property is directly across the street from The Brickyard, a 549,000-sf center, and Bricktown Square with more than 291,000 sf of retail, in addition to surrounding national retailers including Target, Lowe’s Home Improvement, ALDI, and Marshall’s, among others. More than 908,000 residents and 244,000 employees are within a five-mile radius of the Wendy’s asset.
In 2022, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $2.9 billion in deal volume comprised of 760 transactions in 48 states. SRS currently has in excess of 445 properties actively on the market with a market value surpassing $2.2 billion.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2022, the group completed more than 705 sales across 49 states and has over 160 brokerage professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsre.com/national-net-lease-group.