Realty Income Acquires Mariano’s Stores in Lake Zurich and Suburbs for $116M

A recent flurry of acquisitions by San Diego-based Realty Income highlights a growing trend in the commercial real estate market: the high demand for grocery-anchored retail properties, with Mariano’s stores serving as a particularly attractive investment. The real estate investment trust (REIT) spent a combined $116.3 million to acquire three Mariano’s locations in Harwood Heights, Lake Zurich, and Frankfort. These acquisitions from the U.S. arm of Coleshill, England-based IM Properties demonstrate strong investor confidence in properties tied to established, long-term retail tenants.

For commercial real estate agents, the appeal of grocery-anchored properties, such as Mariano’s, is clear. Amid a shifting retail landscape, where competition from online retailers has disrupted many traditional shopping centers, grocery stores remain a resilient sector. Unlike many other types of retail properties, supermarkets provide essential goods and consistently draw foot traffic, making them less susceptible to the threats posed by e-commerce. This makes grocery-anchored centers particularly attractive for investors looking to minimize risk while maintaining stable, long-term income streams.

The acquisition of the Lake Zurich Mariano’s store is especially noteworthy for the local market. Realty Income paid $40 million for the 74,300-square-foot property at 1350 E. Main Street, equating to approximately $538 per square foot. This transaction highlights the rising value of such properties and underscores the strategic importance of Lake Zurich within the retail landscape. Commercial real estate agents in Lake Zurich have an opportunity to emphasize the value of properties tied to high-performing retailers like Mariano’s, particularly those with long-term lease agreements. The Lake Zurich store’s lease extends another 18 years, ensuring consistent revenue and stability for the property’s new owner.

 

The broader rise in value for Mariano’s properties also reflects broader market dynamics. IM Properties, which initially acquired these locations between 2013 and 2015 for a combined $83.1 million, realized a 40% increase in value over less than a decade. This level of appreciation demonstrates not only the resilience of grocery-anchored properties but also the strong investor demand for well-positioned, well-tenanted assets. For local commercial property management professionals, this trend reinforces the importance of maintaining relationships with strong anchor tenants who can drive long-term value and stability for retail centers.

Realty Income’s broader acquisition strategy, including a $34.6 million purchase of another Mariano’s store in Des Plaines, further highlights the REIT’s commitment to grocery-anchored properties. By acquiring multiple Mariano’s locations, the company is strategically positioning itself to capitalize on the grocery store’s ongoing popularity and long-term lease security. This investment approach, rooted in reliable income and stable tenants, aligns well with broader investor interest in properties that can withstand market fluctuations.

In west suburban Harwood Heights, Realty Income paid $35.4 million for a 73,000-square-foot Mariano’s store at 7401 W. Lawrence Ave., equating to $486 per square foot. In Frankfort, the REIT acquired a 74,300-square-foot store at 21001 S. LaGrange Road for $40.9 million, or $550 per square foot. Such high valuations illustrate the premium investors are willing to pay for properties that offer a combination of strong tenant stability and enduring consumer demand.

This acquisition spree by Realty Income offers a clear message to commercial real estate agents in Lake Zurich and beyond: grocery-anchored retail properties, especially those tied to strong, growing brands like Mariano’s, present lucrative opportunities for investment. The stability and consistent foot traffic generated by grocery stores make them highly desirable in a market where other retail segments may struggle. As such, Lake Zurich’s commercial real estate market can benefit from the increased visibility and investor interest driven by marquee transactions like these.

In conclusion, Realty Income’s acquisition of multiple Mariano’s stores reflects the ongoing appeal of grocery-anchored retail properties as stable, income-generating investments. For commercial real estate agents in Lake Zurich and similar markets, these deals emphasize the value of properties with long-term leases and strong tenants, making them attractive prospects for investors seeking predictable returns and resilience in a shifting retail environment. This trend suggests continued opportunities for growth and investment in Lake Zurich’s commercial real estate sector, as demand for grocery-anchored assets remains strong.