280 N Randall Road is a newer construction retail center in Lake in the Hills, IL. The development reached full occupancy upon completion with Dunkin’ Donuts and Athletico both signing long-term leases. Brookline managed the center for several years. The owners approached Dominick about selling the center to free up capital for another project. Dunkin’ Donuts’ lease was set to expire in the coming months. Athletico had three years remaining. Ownership wanted to maximize the value for a sale, something that would have been difficult to do with the existing leases. The building’s owners looked to Dominick and Brookline to analyze the investment offering, increase value and begin the marketing process.
Brookline was enlisted as selling broker for the center in addition to their current property management services. Dominick and his team first completed all necessary and open management projects. Dunkin’ Donuts was then approached about exercising their five-year option. Athletico was approached about negotiating an early lease extension to strengthen the investment. The aim was to make the center a more long-term and stable offering in a higher price point tier. The Brookline team then gathered the other necessary data - leases, income expense reports, comparable property history - and heavily researched the trade area to begin marketing the center for purchase. A comprehensive marketing strategy was then launched to attract lower cap rate buyers, private investors, institutional investors as well as 1031 exchange buyers. Through vigorous internet, email and social media marketing targeting investors and brokers, 280 N Randall Road was presented to a large network of qualified and viable candidates.
RESULT - LEASING
• Brookline successfully got Dunkin’ Donuts to extend their five-year lease option as-is with no re-negotionation of terms
• Brookline was able to negotiate a five-year extentsion to add on to Athletico’s current lease, bringing Athletico to an eight-year lease
RESULT - SALE
• Brookline procured multiple offers from national buyers, ultimately closing with a 1031 buyer
• Buyer chose to retain Brookline Property Management services
• Sold at full occupancy
• Sale Price - $2,625,000
“Our investor group decided to explore the option of selling the building at 280 N Randall Road in Lake in the Hills. We were concerned about the remaining length of the leases and how it might affect our sale price in the marketplace. Dominick suggested trying to extend the current leases to make it a more attractive investment. We were delighted that he was able to extend not just one, but both tenants’ leases by five years. He ultimately brought us a 1031 buyer and we closed at a number we were happy with. Dominick’s efforts allowed us to pursue another opportunity and I would endorse him and Brookline’s services for any project.” - David K.
Brookline’s Dominick Cannata was named as one of this year’s recipients of the CoStar Power Broker Award for the transaction volume reached by his team in 2018 for the Chicago market. Dominick was recognized for the number of retail transactions he brokered in Chicago and the suburbs during the calendar year.
A returning client had specific requirements for a multi-tenant property that began with the need for a second generation restaurant space. They preferred to be within Chicago’s city limits. The idea was to attract a startup or existing food tenant to not only find the space lucrative, but to sign long-term and have success.