Listing ID: 81569
Business Overview
Olympia Square Shopping Center in Olympia Fields, IL is ready for its next owner!
Key Investment Considerations
* 100% occupied grocery anchored shopping center with +/- 12,000 square foot vacant outlet building for value-add upside.
* Strong historical occupancy with 80% of the current GLA in place since 2012 or earlier.
* Largest tenant dates back to 1991.
* Bizios Fresh Market recently signed a 5-year lease extension.
* Three tenants renewed/extended their lease terms in the past year.
* Entire parking lot stripped and resurfaced in 2016, a $210,000 capital improvement.
* Excellent access and visibility at the signaled intersection of Vollmer Road and Governors Highway (430 foot frontage on Vollmer, 657 foot frontage on Governors Highway).
* Located near St. James Hospital (less than a mile away), Olympia Fields Country Club (less than a mile away), Metra Train Station (half mile to the east) and the I-57 interchange (two miles away).
* Average household income in the 1 mile radius is in excess of $100,000.
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Financial
- Asking Price: $6,125,000
- Cash Flow: $415,512
- Gross Revenue: $950,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Pursuing other opportunities
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nonetheless, the true factor and the one they say to you may be 2 entirely different things. For instance, they might say "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competitors, current decrease in incomes, or an array of various other factors. This is why it is really crucial that you not rely totally on a seller's word, but instead, make use of the vendor's response along with your general due diligence. This will paint an extra realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses finance loans with the purpose of covering items like supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that earnings margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be satisfied or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract new consumers? Most times, operating businesses have repeat clients, which develop the core of their day-to-day revenues. Particular factors such as new competitors growing up around the area, road building, and also personnel turn over can affect repeat consumers and negatively affect future incomes. One vital point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the better the chance to construct a returning client base. A final idea is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? How might the neighborhood mean household income effect future income potential?
