6422 N Sheridan
Chicago, IL
28,678 square foot distressed Class A retail asset anchored by Target and located steps away from Loyola University in Chicago, IL.
Closed
Projections
10.5% - 16.1%
1.32x - 1.46x
1-3 years
Commercial
Investment Documents
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Investment Overview
6422 N Sheridan is a 28,678 square foot, Class A multi-tenant retail asset located in Chicago’s
Edgewater neighborhood, immediately adjacent to Loyola University. Constructed in 2021, the property features below-grade parking for 124 vehicles and is subdivided through a commercial condo within a greater seven-story mixed use building. The mixed-use building is situated on a ground lease via the Chicago Housing Authority with approximately 92 years of term remaining (fully prepaid). The property is currently 89.79 occupied by two (2) tenants with a 9.5-year WALT.
The property is anchored by Target Corporation, which occupies 23,140 square feet under a 15-year NNN lease with four five-year extension options at 10% rent escalations. Wintrust Bank, N.A. occupies 2,609 square feet on a 10-year NNN lease with 2% annual escalations and two five-year options. The remaining 2,929 square feet is vacant, providing an opportunity for lease up upon acquisition. 6422 N Sheridan’s Class-A construction and high-traffic location position the property to attract strong tenant interest.
6422 N Sheridan Road’s long-term tenancy, anchored by Target (rated ‘A’ by Fitch and S&P) and Wintrust Bank (rated ‘A’ by Morningstar DBRS), provides stable cash flow within a high-barrier-to-entry market. The asset’s high-traffic Edgewater location adjacent to Loyola University Chicago delivers exceptional visibility with over 46,000 daily drivers along Sheridan Road. This location provides access to major transportation networks and benefits from strong demographics with an educated workforce. While new deliveries have slowed, with just 0.1% of market inventory under construction, the Northwest City submarket remains strong. Per CoStar, the submarket reports a 3.5% retail vacancy rate, outperforming the 4.9% vacancy rate across the Metro market. The receivership sale allows for acquisition at a 9.15% year-one cap rate, well-above the submarket average cap rate of 7.8%.
Property Location
6422 N Sheridan Road
Chicago, IL 60626
6422 N Sheridan is a 28,678 square foot, Class A multi-tenant retail asset located in Chicago’s Edgewater neighborhood, immediately adjacent to Loyola University. Constructed in 2021, the property features below-grade parking for 124 vehicles and is subdivided through a commercial condo within a greater seven-story mixed use building. The mixed-use building is situated on a ground lease via the Chicago Housing Authority with approximately 92 years of term remaining (fully prepaid).
Built
2019
Building Size
28,678 SF
NUMBER OF TENANTS
2
Number of Stories
1
Business Plan
Distressed Acquisition
Midloch’s going-in basis reflects an ±8.4% cap rate on existing cash flow, which is significantly above prevailing market cap rates for comparable Class A retail in Chicago. This favorable entry point provides both downside protection and immediate yield, while positioning Midloch to create additional value through stabilization and an eventual sale. Midloch projects a stabilized yield on total project cost of ±9.4%, which compares favorably to market cap rates of 7.0% - 7.5%.
Strong National Credit Tenant
The property is anchored by two nationally recognized, investment-grade tenants—Target and Wintrust Bank—who collectively occupy nearly 90% of the space. Both tenants have long-term leases extending through 2035, providing stable, predictable cash flow well beyond Midloch’s projected 1–3 year hold period.
Below-Market Rents and Upside
Many current tenants are on legacy leases at below-market rental rates, providing an opportunity to mark rents to market levels.
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