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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.

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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.

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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.

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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 jkiger@postbulletin.com 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 jkiger@postbulletin.com or via Twitter to @whereskiger . You can call him at 507-285-7798.
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