2900 Colorado in Joliet, IL is a two-tenant retail building on the ring road of Louis Joliet Mall. We acquired this attractive property from a lender, Elgin State Bank (now part of the Wintrust family). The property was part of a large loan portfolio the bank took back from a delinquent borrower. We had been overseeing this property on behalf of ESB as the managing agent, handling the day-to-day management, maintenance and collections. We were able to acquire this stabilized property in 2010 from the bank at a very attractive basis with long-term leases in place, including Dollar Tree in 13,000 of the 20,000. The other tenant, Regency Corporation, was in the property for almost 7 years of our hold before they went dark in each of their 39 locations in the Midwest. We were successful in releasing the property to Osaka, a restaurant that was located across the busy street and looking for an expanded footprint.
With the new Osaka lease in place and an early lease extension with Dollar Tree, we were successful in selling the property to an out-of-state 1031 trade buyer at an attractive price for our investors. We held this property for 9.5 years and returned a 20+% IRR to our investors and a 3.2 equity multiple.