Headwater Capital, a private equity firm specializing in long-term, secure cash flow from commercial real estate, has announced the $13.1 million acquisition of Barrington Town Center. The firm secured $5 million from investors and arranged financing for the balance of the purchase price.
"The Barrington property is one of the most compelling commercial real estate investments we have experienced," said Headwater Capital co-founder and CEO Robert A. Kantor. "Barrington exemplifies a commercial investment opportunity with outstanding fundamentals — superior demographics and an intrinsic value in excess of the acquisition price.
"Barrington is projected to provide our investors with an average cash flow exceeding 9 percent per year over 10 years, with an IRR of 12 to 14 percent."
The 112,631-square-foot Barrington Town Center, built between 1996 and 2004 by DDR Corp., is the dominant retail center in the heart of affluent, upscale (average household income exceeds $130,000) Aurora.
The 97 percent occupied property includes businesses such as the 10-screen Cinemark theater, University Hospital’s Aurora branch, Howard Hanna, Dollar Tree, Great Clips, Pizza Hut, the UPS Store, Subway, GNC and Doogan’s.
The Heinen’s Supermarket, Huntington Bank building, CVS/Pharmacy, Wendy’s, Dunkin’ Donuts and Walgreens are not part of the sale.
For more informat9on, check out the Advocate's April 12 edition.