Inland acquires four Jewel-Osco stores
Inland Real Estate Acquisitions, one of the most active acquirers of retail real estate in the U.S. has closed on the purchase of four Chicagoland Jewel-Osco stores.
All of the supermarkets have been signed to new 20-year leases. The locations:
• 1869 South Arlington Heights Road, 61,475 sq. ft., Arlington Heights, Ill.
• 1340 Patriot Boulevard, 63,523 sq. ft., Glenview, Ill.
• 1759 West Odgen Avenue, 64,977 sq. ft., Naperville, Ill.
• 7122 West 40th Street, 58,647 sq. ft., Stickney, Ill.
“These Jewel-Oscos are staples in their community, with sales ranging from $27 million to $33 million per year for each store,” said Inland Real Estate Acquisitions president Joe Cosenza. “They are well-established and in prime locations with an average three-mile household income of $108,000 and an average three-mile population of 128,000 customers for all four stores.”
To date, Inland has acquired more than more than $45 billion worth of real estate, $27 billion of which are retail properties.
E-commerce growth fuels warehouse demand — and higher land prices
E-commerce expansion has companies scrambling to expand their warehouse networks — but their efforts come with hefty price tags.
As e-commerce players continue their quest to shorten their delivery windows, more companies are eager to operate warehouses close to where their customers reside. Besides struggling to find available industrially-zoned land — especially near cities, now companies are facing a new challenge.
A new study from real estate services firm CBRE said that some plots of land now cost twice the amount they did a year ago. This is especially true in major markets, including Atlanta and Houston, according to CNBC.
The CBRE study, which is based on 10 U.S. markets, revealed that the average price for “large industrial parcels” (50 to 100 acres) now sits at more than $100,000 per acre. This is a jump from about $50,000 a year ago. The cost of land for smaller warehouses in or near cities — like those used for last-mile or same-day delivery — rose to more than $250,000 an acre, up 25% from 2016 to 2017, according to Recode.
In CBRE’s study, David Egan, the group’s global head of industrial and logistics research, said that one way to avoid high land costs is to repurpose vacant malls and retail centers into warehouses. While that process has begun, the concept is not yet widespread.
Escalating prices will also slow the availability of land and building supply to catch up with retailer demand.
“This situation won’t go away any time soon, because the markets where distribution centers are most in demand — typically near or in densely populated city centers — have scant available land for industrial uses,” Egan said in the CNBC report.
Texas center executes four leases totaling 105K sq. ft.
Wendland Plaza in Killeen, Texas, is a joint that’s jumping—and it’s not just due to the Altitude Trampoline Park set to open there later this year.
The Woodmont Company reported it has signed four leases totaling 105,851 sq. ft. at the property, which is owned by Killeen ATM LLC. The stores and sizes, all opening in 2018, are:
• Conn’s Home Plus, 45,000 sq. ft.
• Conn’s Home Plus, 45,000 sq. ft.
• Altitude Trampoline Park, 44,580 sq. ft.
• Dollar Tree, 10,500 sq. ft.
• Lumber Liquidators, 5,771 sq. ft.
Located at the northwest corner of Highway 190 and Fort Hood Street, the a 205,224-sq.-ft. Wendland Plaza is adjacent to the main housing subdivision for Fort Hood, the largest military base in the U.S. with more than 60,000 soldiers and family members.