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Kohl's 1240 Hickory Point Mall 92,500 sq ft Retail Property Forsyth, IL 62535 £1,666,288 (£18.01/sq ft) 7.25% Net Initial Yield
Investment Highlights
- 92,500 SF single-tenant Kohl’s department store located within Hickory Point Mall, the primary regional retail hub serving the Decatur market.
- Kohl’s has operated at this location since 1982, demonstrating long-term commitment to the trade area.
- Located along U.S. Route 51, a major north–south corridor with approximately 17,600 vehicles per day.
- Absolute NNN ground lease structure provides zero landlord responsibilities.
- Lease includes contractual 10% rent increases every five years, offering built-in inflation protection.
- Situated less than one-half mile from the Route 51 / Interstate 72 interchange, providing strong regional accessibility.
Executive Summary
Below Market Rent: Current rent is significantly below market rent paying a mere $1.76 PSF, offering substantial future upside.
Below Replacement Cost: At $24.31/SF, the acquisition price is significantly below replacement cost, offering strong upside and yield potential.
Hedge Against Inflation: The lease provides for 10% rent increases every five years. The next scheduled bump is in 3.5 years, which will adjust the cap rate to approximately 8.8%.
New Area Developments: Forsyth, IL is experiencing sustained commercial expansion. New developments such as Panda Express’ recently delivered outparcel and Chick-fil-A’s planned redevelopment of the former Applebee’s pad along U.S. Hwy 51 demonstrate strong tenant demand within the corridor. The area continues to attract national retailers including Starbucks, Five Below, Dollar General, Taco Bell, and Menards, reinforcing its position as a growing retail hub.
Prime Lodging Hub: There are approximately 13 hotels in the city, making this the premier retail and hospitality node for the entire Decatur metro area, making it one of the strongest commercial trade areas in Central Illinois.
Strategic Location: Kohl’s is located within Hickory Point Mall, the primary retail hub for Decatur, IL and the communities between Champaign and Springfield. The mall fronts US Route 51, a major north–south corridor with over 17,600 VPD, providing direct access to Downtown Decatur and to Bloomington. It also sits just a half-mile from the Route 51/Interstate 72 interchange, offering strong regional connectivity.
Strong Regional Employers: Major employers in the area include Archer Daniels Midland, Caterpillar, Decatur Memorial Hospital, Decatur Public Schools, HSHS St. Mary’s Hospital, and Ameren Illinois.
Property Facts
Amenities
- Signage
Sustainability
Sustainability
LEED Certification Developed by the U.S. Green Building Council (USGBC), the Leadership in Energy and Environmental Design (LEED) is a green building certification program focused on the design, construction, operation, and maintenance of green buildings, homes, and neighbourhoods, which aims to help building owners and operators be environmentally responsible and use resources efficiently. LEED certification is a globally recognized symbol of sustainability achievement and leadership. To achieve LEED certification, a project earns points by adhering to prerequisites and credits that address carbon, energy, water, waste, transportation, materials, health and indoor environmental quality. Projects go through a verification and review process and are awarded points that correspond to a level of LEED certification: Platinum (80+ points) Gold (60-79 points) Silver (50-59 points) Certified (40-49 points)
Nearby Major Retailers
Property Taxes
| Parcel Number | 07-07-22-226-006 | Improvements Assessment | £206,714 |
| Land Assessment | £306,829 | Total Assessment | £513,542 |
Property Taxes
Presented by
Kohl's | 1240 Hickory Point Mall
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