Northgate Plaza 1502-1508 N Cunningham Ave

Graystone Capital Advisors has been exclusively engaged to present for sale Northgate Plaza. The 49,830 SF shopping center sits on 7.04 Acres on North Cunningham Avenue, just off of I-74 which is the major east to west interstate through Illinois. Currently the center is 83% occupied at below market rents, presenting a true value add opportunity for investors.
Anchored by Dollar General and Harbor Freight Tools, the rent roll has a healthy mix of national and local tenants. 62% of the GLA has been operating at the site for nearly 15 years while an additional 14% has been at the site for over 5%. The longevity of the tenants and strong history of occupancy illustrates their success at this location.
8,450 square feet is currently vacant, giving investors the opportunity to increase the NOI by 30% and unleveraged double digit returns over 10%. There are additional value add opportunities through the conversion of modified gross leases to true triple-net along with bring below market rents to market. The current average rental rate is $8.77 with various reimbursement structures. Market Rent in the area is $16.32 NNN with extremely low vacancy in the market of 3% and high demand for space. This would have a significant positive impact on the NOI along with limit expense exposure risk through the triple-net conversions. Northgate Plaza also benefits from recent capital expenditures such as a roof replacement in 2022 and major HVAC improvements completed in the last few years. The shopping center is less than 2 miles to the University of Illinois Campus, which has a student enrollment of 55,000 and over 13,000 employees. It is also very close to Downtown Urbana, less than 3 miles away, and Downtown Champaign, approximately 3 miles away. 49,000 vehicles travel through the area on I-74 while 20,000 directly pass the site on North Cunningham Avenue, a major retail corridor The shopping center has excellent visibility and access to the major thoroughfare along with benefiting from sitting at the signalized intersection of N Cunningham Avenue and Count Road 1700 N.
Offered below replacement cost at only $62.31 PSF, Northgate Plaza allows investors an opportunity to capture true value add potential with the lease up of 17% of the GLA while having the security of two national tenants along with a rent roll with strong history of occupancy. Additionally, Urbana is not only a college town but also county seat of Champaign County, providing strong economic drivers fueling the local community and consistent retail consumer base.