The Mariano’s grocery store in crystal lake sold for $36 million earlier this month, a move Mayor Haig Haleblian said speaks to both the value of big-name retailers and the city’s burgeoning Route 14 corridor.
Jason Maier, senior manager in Manhattan Stan Johnson Society, which brokered the deal, confirmed that the sale of the franchise took place earlier this month. The grocery store, which opened in 2018, was sold by New York investor Michael Tsoumpas; Maier said the buyer hasn’t been made public, but he “plans to hold it for a very long time.”
“It’s a good deal for Crystal Lake,” Haleblian said. “It speaks to the strength of the retail market here. There are some exciting things going on in the grocery business right now.
The sale comes as Mariano’s parent company, Kroger, seeks to merge with Albertsons in a potential $20 billion deal, The Associated Press reported.
Although the value of Crystal Lake Mariano’s has increased by 41% since it opened in 2018, according to Crain’s Chicago Businessat least one independent grocery store in the northwest suburbs announced its imminent closure.
Correction: A previous version of this article stated that Island Foods in Island Lake had closed. While the store announced its pending closing in Julythat shutdown has been suspended, product manager Mark Turner said.
Nonetheless, Haleblian welcomed the news of the sale and said it could indicate positive side effects on the city’s business climate.
Maier, who confirmed the sale was strictly real estate and that of the Marianos would not change, said the value of supermarkets had increased due to the pandemic and the “essential trade” label.
“Everyone needs food, needs groceries,” Maier said. “A lot of people have had to reevaluate which properties are the most valuable, the most stable. Grocery still has huge demand, but the pandemic has shined greater demand and desirability on these assets.
Maier called Mariano a “unique and upscale” grocery brand, and that this particular Crystal Lake location should be “unresponsive” to market changes, suggesting that only a Whole Foods or similar store coming to town would stand a chance. to create competition.
Haleblian said that although he was surprised by the dollar figure, it showed that real estate investors had a high opinion of this property, both in the location and retail sector, and that the Crystal Lake’s Highway 14 corridor was “open for business,” Haleblian said, adding that such a big sale doesn’t happen very often.
Several redevelopment projects are located along the Crystal Lake section of Highway 14, including a new tenant for the former TitleMax Title Loans building and the Water’s Edge mixed-use proposal that would replace the nearly empty Crystal Court Mall. The addition of Rookie’s Bar and Restaurant in downtown Crystal Lake means that area of town is also completely filled, Haleblian said.
“If a property is for sale here, it snaps up quickly,” Haleblian said.