Coolwood Plaza - Grocery Shadow Anchored 2252-2274 Morthland Dr

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Coolwood Plaza, a grocery shadow anchored retail center located in Valparaiso, Indiana. With 11 tenants in total, the rent roll is synergistic with a mix of retailers who flourish when paired with a grocery store. There’s an opportunity to mark rents to market as leases roll, since all tenants are paying below market rents, particularly those tenants located on the outparcel building.
Coolwood Plaza has been a grocery anchored center for 40 plus years, and with the recent acquisition of Strack & Van Til by Hy-Vee, the center now has a national “best of breed” grocer driving traffic to this site. Positioned on US Highway 30, at a lighted intersection with
an internally illuminated pylon sign, the tenants further benefit from exposure to over 30,000 vehicles per day.
This offering also includes a Strack & Van Til bakery/commissary space, operating on a separate lease from the grocery store, but with the same corporate guarantor. Strack expanded into this space and uses it to prepare food that supplies the 21 other Strack & Van Til locations in Northwest Indiana. Strack has exercised several extension options on the commissary space over the last decade plus of occupancy. They have two 5-Year options remaining, the first of which has a 12% rent increase, the second has a 10% increase.
As mortgage rates are expected to compress further over the next 12 months, properties like Coolwood Plaza will become even more compelling to investors. This is an opportunity to buy a food & drug anchored retail center—whether it’s purchased as “shadow anchored” or otherwise—at a highly appealing price per square foot of $169, with rents that can be increased through a more aggressive leasing program, in a location with significant demographic tailwinds.
Please reach out to Marcus & Millichap with interest in Coolwood Plaza, or in the adjacent Strack & Van Til property.