Greenwood Springs (Greenwood, IN) (Cloverleaf Fund VI) Sold
In July 2022, we completed the sale of Greenwood Springs, a 28,028 square foot center in south suburban Indianapolis, for $10,112,497. The property, which consists of two multitenant buildings on the corner of a Walmart Supercenter anchored development, was purchased by Cloverleaf Fund VI in November 2014 for $4,725,000. At the time of our acquisition, the center included a handful of vacancies, under-market rents, and unstable tenants. We believed the location was ripe for substantial growth and were gratified that the area matured considerably during our ownership, becoming more sought after by tenants and investors. Over time, we filled the vacancies and upgraded the majority of the property’s leased spaces to higher-rent paying tenants. While this asset was part of Fund VI, when viewed on its own, the investment yielded an 19.30% IRR and 3.31 equity multiple.
Granger Station (Granger, IN) (Cloverleaf Fund VII) Sold
In February 2023, we completed the sale of Granger Station, a 17,539 square foot center in the South Bend area, for $2,900,000. The property, which is adjacent to a separately owned Martin’s grocery store, was purchased by Cloverleaf Fund VII in June 2016 for $1,600,000. At the time of our acquisition, the property had significant vacancy and tenant transiency. We stabilized the rent roll, including recently adding a new ten-year Dunkin Donuts lease, and made considerable capital improvements. While this asset was part of Fund VII, when viewed on its own, the investment yielded a 10.68% IRR and 1.69 equity multiple.
849 Elmhurst Road (Des Plaines, IL) (Cloverleaf Fund VI) Sold
In August 2022, we completed the sale of 849 Elmhurst Road, an 8,400 square foot multitenant building in northwest suburban Chicago, for $1,550,000. The property, which sits next to a Jewel grocery store, was purchased vacant by Cloverleaf Fund VI in April 2015 for $710,000. Though we brought it to 100% occupancy, the asset experienced challenges because its largest tenant, a fitness user, struggled (particularly during the pandemic), while real estate taxes increased dramatically. Cloverleaf typically avoids Cook County because of its high, volatile taxes. Here, we incorrectly calculated that the upside would overcome that issue. After assessing all alternatives, we determined a sale was preferable to continued ownership. While this asset was part of Fund VI, when viewed on its own, the investment yielded a 2.64% IRR and 1.19 equity multiple.