Local Hy-Vee among leaseback deal

The New Prague Hy-Vee and its gas station are among six Minnesota properties that have been sold in leaseback deals that total more than $88 million. The combined grocery store and liquor store and gas station, all along 10th Avenue SE in New Prague, will still be operated by Hy-Vee Inc.

Oak Brook, based in Illinois, The Inland Real Estate Group of Cos. Inc. bought the locations in January from the West Des Moines-based grocery chain, according to public filings with the Minnesota Department of Revenue. Mark Cosenza, senior vice president of Inland Real Estate Acquisitions, confirmed in an email that Inland acquired a total of six Hy-Vees in the state.

Information about five of the properties is publicly available, but details on the sixth property was not yet public as of Tuesday. The locations will be leased back to Hy-Vee for 240 months, or 20 years. The gas station in New Prague was sold for nearly $5.7 million and the grocery/liquor store sold for around $11.7 million. Both locations will still be operated by Hy-Vee Inc.

Other known acquired properties are located in Rochester, Spring Lake Park and Lakeville.