Permanent Loan - Acquisition
- 65,946 sf Grocery Store
- Merrillville, IN
Axiom Capital Corporation has arranged $3,000,000 in acquisition financing for a stand-alone grocery store in Merrillville, IN. The non-recourse loan was closed at a fixed rate for 10 years. At the time of closing the loan demonstrated a 74.1% Loan to Value and a 1.42x Debt Service Coverage amortized over a 30 year period.
The subject property is a 65,946 SF single tenant building. It was constructed in 1994 and underwent major renovations in 2012 when the current grocery anchor relocated from across the street to improve visibility and access. The building is 100% occupied by Ultra Foods. Ultra Foods is a grocery store owned by Strack & Van Til Corporation. The company is headquartered in Highland, IN, just 10 miles from the subject. They are one of the largest supermarket operators in the area operating 36 stores in Northern IN & IL under the banners Strack & Til, Ultra Foods, and Town & Country Food Market. In Fiscal Year 2013 Strack and Van Til reported sales of $1.1 billion and a net income of $12.5 million.
The property is situated on a 4.36 acre parcel on the main retail corridor servicing the Merrillville/Hobart area in Lake County, IN. The town of Merrillville is known for being a retail hub in Northwest IN as it is conveniently located around the intersection of US Rte. 30 and Interstate 65 and serves the market with little competition. According to a 2010 census, the population of Merrillville was around 35,000. The town is also home to the corporate offices of NiSource a fortune 500 company.