In August 2017, Roundy’s West Bend retail building was sold for $18,187,000. The investment generated a 16.0% IRR and an Equity Multiple of 2.3 to 1 over the seven year hold. Upon acquisition December 2010, the 63,160 SF property was 100% leased for 20 years to Roundy’s Supermarkets, Inc., which was acquired by Kroger (NYSE: KR) in December 2015 enhancing the investment’s credit quality. In QI 2017, the store was remodeled and rearranged to bring it in line with Kroger’s corporate model. Later, Kroger executed a full guaranty of the lease in exchange for landlord contributing 25% to their $2 million of leasehold improvements. The property was owned 50% by Westminster Fund VII LP and 50% by Westminster Fund VIII LP.
About Westminster Capital
Westminster Capital manages real estate investment strategies on behalf of private wealth capital, including sponsorship of closed-end investment funds and separate account portfolios totaling $748 million of investor capital. Westminster Capital makes commercial property investments throughout the United States across Industrial/Distribution, Apartments, Medical Office and Senior Living properties offering Value-Add to Opportunistic risk-reward returns. Such work includes rebuilding income streams of existing properties, or manufacturing them through new construction. Careful investment underwriting and pursuit of well-funded tenants motivated by powerful long-term secular changes in their needs for such properties. Founded in 1988, the firm is headquartered in Lake Forest, Illinois.