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CB Richard Ellis represented Pappas Development, LLC in an 8.4 acre, long-term ground lease to Iowa-based retailer Hy-Vee.

On a former K-Mart site in the Sycamore Plaza shopping center at Illinois Highway 23 and Oakland Drive in Sycamore, Ill, Hy-Vee will build a new 93,000-square-foot supermarket and adjacent gas station/convenience store, with opening scheduled for spring of 2011.  According to Hy-Vee, the new store will create 350 to 400 jobs and represent an investment of approximately $17 million in the DeKalb-Sycamore economy.

CBRE’s Wendell Hollan, Mario Melone and Joel Erickson represented Pappas Development LLC in the transaction.

Employee-owned Hy-Vee operates 229 retail stores in eight Midwestern states, including 12 stores in Illinois. In 2009 Hy-Vee recorded total sales of $6.4 billion, ranking it among the top 30 supermarket chains and the top 50 private companies in the nation.

Dennis Ausenhus, senior vice president of real estate and engineering for Hy-Vee, said the company had looked at several sites in the DeKalb-Sycamore area before selecting the Sycamore Plaza location.

“We see tremendous opportunities for Hy-Vee in this market,” Ausenhus said. “Hy-Vee traditionally has done well in university communities, and our redevelopment of this site should serve as a catalyst for further retail growth in the area.”

In the new Sycamore store, the emphasis will be on freshness, variety, convenience and service, with features such as a food court with dining area; a pharmacy; a wine & spirits store; a staff dietitian; a HealthMarket showcasing natural, organic and special dietary products; a meeting room that will house the store’s cooking school; a Caribou Coffee outlet; and much more. The convenience store will offer Hy-Vee shoppers discounts on gasoline purchases.

“The overall retail commercial real estate market remains very challenging, however, Hy-Vee’s commitment demonstrates that retailers are active and expanding in locations and markets that make sense for their business,” said CBRE’s Hollan.

Tags | CB Richard Ellis, Illinois, Retail

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