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CHICAGO-Sandor Development, based in Indianapolis, has acquired a Dominick’s Finer Foods grocery store at 225 E. Grand Ave. The seller is a joint venture with Centrum Properties Inc., based here, and Angelo Gordon & Co., based in New York City. The sales price is $22.5 million and Sandor received $12.5 million in financing for the acquisition.

The financing, with “competitive fixed-rate financing,” was provided by “a Midwestern-based life insurance company,” says Steve Skok, an SVP with Jones Lang LaSalle. The Dominick’s Finer Foods grocery store has been open approximately 2.5 years and had originally signed a 15-year lease for the site, Skok says. The term of the financing is co-terminous with the lease, with the financing term being approximately 12 years, he tells GlobeSt.com.

The JLL real estate investment banking group secured the acquisition financing. Skok represented Sandor in the negotiations. The 50,664-sf grocery store is part of the CityFront Plaza development. “They bought it as a long-term investment opportunity,” Skok says of Sandor’s acquisition. “Sandor has historically been an active buyer of single-tenant, net-leased retail properties.” There are a limited amount of grocery stores in the area and Dominick’s “has dominated the market” in the Chicago area, he says.

The mixed-use development will have a total of 1.6 million sf, which will include residential condominium units, retail, restaurants and as many as 350 hotel rooms. The Fairbanks and the St. Clair condominium towers are both already open for occupancy. The location is in the Streeterville neighborhood of Chicago. “It is an urban infill location” with barriers to entry, Skok says. The joint venture of Centrum Properties and Angelo Gordon & Co. reportedly acquired Lehman Brothers’ interest in the development last fall.

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