Elmhurst Mariano's sells for $25 million 5 years after opening

ELMHURST – The Mariano's Fresh Market that opened in 2013 in Elmhurst has been sold for about $25 million to a private venture.

According to a news release from Inland Private Capital Corporation, the property located at 678 N. York Road is 5,277 acres and has a 75,922 square-foot retail building.

Mariano's Fresh Market was the first project associated with North York TIF district after it was created by the Elmhurst City Council.

The property was constructed in 2013 and is leased to Roundy's Supermarkets, Inc., a retail grocery company from Milwaukee, Wisc. that owns the Mariano's Fresh Market brand. In December 2015, Cincinnati-based Kroger Co. purchased Roundy's, which also includes the brands Copp's, Pick n Save and Metro Market, the release stated.

“This was a very successful investment for Inland Private Capital Corporation that resulted in a substantial return for our investors,” President and Chief Operating Officer of Inland Private Capital Corporation Keith Lampi said in the release. “Investors purchased this asset in 2013, and it performed positively due to its strong location fundamentals and the credit enhancement resulting from the Roundy’s and Kroger transaction that occurred late last year.”

The deal was part of a 1030 exchange, an investment that allows investors to sell a property and defer all capital gain taxes by reinvesting the proceeds in a new property.

According to DuPage County property records, Inland bought the property in 2013 for $20,358,845.

Coupled with the cash flow generated during the holding period, the sale resulted in a total return to investors of 156.92 percent, the release stated.

Including profits from the operations, proceeds from the sale and the duration of the hold period, the annualized rate of return from the sale was 22.34 percent for three years.

The Mariano's in Elmhurst was the first to open in DuPage County in 2013, and it added 475 full and part time jobs to the area. Today there are also Mariano's Fresh Market grocery stores in Westmont and Wheaton.