Retail Anchored by Drive-Thru Starbucks Draws Widespread Interest
Marcus & Millichap closed the sale of a new construction, drive-thru Starbucks-anchored retail center in the Southwest Side’s Gage Park neighborhood. The asset sold for $7,075,000 at $477 per square foot, for a cap rate below 7%.
Nicholas Kanich and Mitchell Kiven, investment specialists in Marcus & Millichap’s Chicago Downtown office, marketed the property on behalf of the seller, a prominent Chicago-based developer. The sale closed 45 days after contract signing in an all-cash transaction.
The retail center at 5505 S. Kedzie Ave. features one of the few standalone drive-thru Starbucks in the city of Chicago. The balance of the space is fully occupied by a mix of “Med-Tail” tenants.
Kanich and Kiven procured 10 written offers within the first 30 days. The asset drew interest from a national buyer pool, with offers coming from New York, San Diego, Washington D.C., and Atlanta, as well as from local investors.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).