Whole Foods-Anchored Retail in Chicago

10.0%
gross ann. return*
10 mo.
term remaining
C
Cash Flowing to Investors
Current Ann. Return 5.0%
Accrued Ann. Return 5.0%
Gross Ann. Return* 10.0%

Investment Details

Current Ann. Return 5.0%
Accrued Ann. Return + 5.0%
Gross Ann. Return* 10.0%
Term Remaining 10 of 24 mo.
Min. Investment $5,000
Investment Size $500,000
Underlying Security Preferred Equity

Investment Summary

This Whole Foods-anchored shopping center is a national showcase. The City of Chicago, Whole Foods, and the developer have come together to build a project that is arguably a first in the nation — designed and built with a mission to transform a neighborhood historically in decline. Personally spearheaded by both Mayor Rahm Emanuel and Whole Foods Co-CEO Walter Robb, the retail development intends to address a debate head on: Can Whole Foods catalyze a neighborhood turnaround? 

Key Deal Points

Whole Foods Anchor Tenant

The property is anchored by Whole Foods Market, a Fortune 500 organic and fresh food grocer with over 400 stores globally and $14 Billion in revenue in 2014. This will be the only Whole Foods in Chicago south of 51st Street, providing a regional draw due to the lack of grocery store supply within the surrounding area.

New Market Tax Credits

The economics of the shopping center are further bolstered by a $7.66 million of public subsidies and New Market Tax Credits.

Land Acquisition From City

The Partnership acquired the underlying land from the City of Chicago for $1 in mid-September. The City transferred the property with site work finished, pads ready for vertical construction. The pad-ready land with improvements is worth approximately $3.1 million. 

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 10.0%
Term 24 mo.
Total Return*

Fundrise Rating

The Fundrise Rating is a letter rating ranging from A to E that provides investors with the ability to easily compare investments across the Fundrise platform. The Fundrise rating measures the relative risk-adjusted return of an investment. Learn more
C2
A
1
2
3
B
1
2
3
C
1
2
3
D
1
2
3
E
1
2
3
Category Assessment Points
Capital Senior to Fundrise 1-49% 1
Capital Junior to Fundrise 40% or more 1
Location Tertiary 3
Occupancy Leasing 2
Development Phase Ground-up 3
Sponsor’s Track Record Less than $50 million 3
Overall 13 C2

The information contained in the Fundrise Rating is for informational purposes only. It is impersonal and not individualized for any specific investor's financial situation and is not investment advice. These ratings are not intended to be, nor should you interpret them to be, a prediction of how a particular investment will actually perform. You should always carefully consider investments in any security and be comfortable with your understanding of the investment. You may also consider consulting investment professionals.

Risk-Adjusted Return

Capital Structure

Type Source % of Total Amount
Tenant Improvements Whole Foods 25.0% $3,500,000
Tax Credit New Market Tax Credit Equity 29.7% $4,159,950
Equity Sponsor and LPs 9.5% $1,323,088
Preferred Equity Fundrise Investment 3.6% $500,000
Senior Debt 32.2% $4,500,000
Total 100.0% $13,983,038

Property Summary

This retail development in Chicago’s Englewood neighborhood sits at the intersection of 63rd and Halsted Streets. The development is planned to include a new 18,000 SF Whole Foods Market, 22,000 SF of complementary retail, and a 3,000 SF outlot parcel. The Whole Foods Market is expected to provide convenient access to fresh, healthy natural and organic food for residents of Englewood and surrounding neighborhoods. DL3 expects that Whole Foods Market will follow a urban small format model emphasizing conventional affordable produce along with organic options.  Whole Foods has indicated the store will focus on the “365” house brand and prepared foods. There are three other Whole Foods Markets using this model located in Detroit, Newark, and New Orleans. Located directly across from the property, the recently constructed Kennedy- King Community College boasts an expansive culinary training facility and a multi-million dollar restaurant test kitchen that is expected to partner with the future Whole Foods to bring innovative ideas, job training, and local cuisine to the neighborhood.

Address 63rd and Halsted St.
City & State Chicago, IL
Neighborhood Englewood Neighborhood
Product Type Retail / Grocery & Retail
Project Phase Ground-Up / Leasing

Market Summary

The Englewood neighborhood is located 8 miles south of downtown Chicago. In the early to mid twentieth century, the 63rd and Halsted commercial corridor was the second busiest shopping district in Chicago, only outpaced by the downtown Loop shopping area. The corner was home to a Sears department store, a Kresge's department store, and numerous smaller retailers. Englewood was a vibrant community with approximately 100,000 residents. 

About the Sponsor

Alison Gillis

Real Estate Associate

Alex Sparhawk

Real Estate Associate

DL3 Realty is a commercial real estate company driven by a mission to develop projects which help to improve and sustain neighborhood life in Chicago’s urban communities, including grocery retail centers, medical office buildings and educational facilities. Leon Walker, Managing Partner of DL3 Realty, has spent the past 10 years acquiring, developing and advising partners in the development of prominent commercial urban locations in Chicago in order to establish high quality education programs, professional office buildings, and national retailer anchored strip malls.

View full profile

Fee Schedule

Gross ann. return* 10.0%
Servicing and administration fee -0.5%
Net ann. return to investors 9.5%

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Gross Ann. Return* 14.0%
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