Self-checkout -- $32 million paid for Rochester grocery

The Iowa-based grocery chain, Hy-Vee, sold its 90,000-square-foot store at 4200 West Circle Drive NW for $32. million on Jan. 19. As part of the deal, Hy-Vee agreed to lease the store back from the new owner, Inland Real Estate Group of Cos., for 20 years.

Heard Around Rochester - Jeff Kiger.png
We are part of The Trust Project.

ROCHESTER — An Illinois real estate investment firm bought Rochester’s newest and largest grocery store for $32.07 million last week and they didn’t even use coupons or Fuel Saver points.

The Iowa-based grocery chain, Hy-Vee, sold its 90,000-square-foot store at 4200 West Circle Drive NW on 10.5 acres on Jan. 19, 2021. The store, Hy-Vee’s fourth in Rochester , was built and opened in 2015.

The Oakbrook, Ill.-based Inland Real Estate Group of Cos. purchased the property under the name of Essential Net Lease Portfolio DST.

The full purchase price was $32,079,805.48. Inland paid an oddly repetitive $222,222.22 down payment to Hy-Vee.

Inland has purchased and sold other commercial property in the area over the years. It currently owns the Walgreens store on Civic Center Drive.


As part of the deal, Hy-Vee agreed to lease back the store for 240 months, or 20 years, from Inland, according to state records.

The West Circle store was the last Rochester location that Hy-Vee owned. The grocery chain now leases all four Med City stores.

Also Read
Minneapolis-based Kraus-Anderson filed plans this week for an 88,500-square-foot retail center to be built on the corner of Rochester's Commerce Drive Northwest and Scott Road Northwest. The site development plan filed with the city lists the project's title as “Cub Foods - Commerce Drive.”
Jennifer Cuizapa is cooking up a new 1,323-square-foot sweet spot to be called Bombon in the Century Business Plaza building at 2571 Clare Lane NE. That’s a space not far from Century High School.
Dr. Scott Zietlow, who has worked at Mayo Clinic since the early 1990s, will take on the titles of president and CEO of the La Crosse, Wis.-based Kwik Trip at the start of 2023. He is replacing his father, Don Zietlow, who is retiring.

Olmsted County estimated the total market value of the West Circle store plus the land at $7.45 million for 2021-2022.

Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in "Heard on the Street." Send tips to or via Twitter to @whereskiger . You can call him at 507-285-7798.

Jeff Kiger writes a daily column, "Heard Around Rochester," in addition to writing articles about local businesses, Mayo Clinic, IBM, Hormel Foods, Crenlo and others. The opinions of my employer do not necessarily reflect my opinions. He has worked in Rochester for the Post Bulletin since 1999. Send tips to or via Twitter to @whereskiger . You can call him at 507-285-7798.
What to read next
Michael Adam Davis, 38, was convicted of sexually assaulting a juvenile male under his care while Davis was a Church of Jesus Christ of Latter-day Saints leader. He was sentenced to 30 years in prison this week.
Goodhue County Sheriff's Deputy Steve Sutton-Brown, a nearly 20-year law enforcement veteran, shot an unarmed 24-year-old Fernando Javier Carbajal after Carbajal allegedly chased after the deputy. Sutton-Brown is on administrative leave with pay pending the outcome of an investigation by the BCA.
Roads throughout Southeast Minnesota are wet Tuesday as snow falls throughout the area.
A list of area school and organization weather-related announcements. Have an announcement? Email it to