Hilco Real Estate to Market Bank-Owned Portfolio
- Apr 19, 2017
Hilco Real Estate recently announced that it has been chosen to market a 10-property former bank branch portfolio on behalf of a large Illinois-based bank. The portfolio encompasses approximately 114,000 square feet of office and warehouse space, the properties being located throughout the Chicagoland area and Northwest Indiana.
The company’s team representing the seller includes Vice President Steve Madura and Analyst Mallik Virupannavar. The deadline for submitting initial offers is May 24. All former bank branch locations include a restriction prohibiting future use as a bank or competing financial institution until April 1, 2018.
The initial asking price for the portfolio is approximately $8.9 million. Bids will be given consideration/priority based on parameters such as purchase price, list of any contingencies required to close the transaction, timeframe for due diligence and closing, earnest money deposit, source of buyer’s capital and proof of financial wherewithal and experience in completing similar transactions.
Seven of the properties are located throughout the Chicagoland area, the highlights being two adjacent industrial flex buildings that total 34,165 square feet in Hickory Hills, a well-located former bank branch on 11346 S. Cicero Ave. in Alsip, and a 21,500-square-foot bank branch in Danville. Three of the properties and a 0.75-acre plot of land are situated in Northwest Indiana, the largest being a partially-leased 30,000-square-foot, multi-level office building with a former ground-floor bank branch, situated along U.S. Route 41 in St. John.
“The layout of the structures and lot sizes will be very attractive to a wide audience of medical and general office users, real estate developers, and investors. Many of these properties are located in well-traveled commercial districts and have tremendous income producing potential. As such, we anticipate this sale to attract active interest from a broad spectrum of businesses, developers, investors and end-users,” said Jeff Azuse, senior vice president of Hilco Real Estate, in a prepared statement.
“As we see a shift in consumer preferences in the banking industry, large brick and mortar bank branches are no longer a necessity to run a successful consumer banking operation. Both the quantity and size of branch locations within a bank’s portfolio has decreased significantly in recent years,” Azuse added.
Image courtesy of Hilco Real Estate