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Papa G’s site stirs buyer, investor interest

Published: Wednesday, Jan. 15, 2014 5:30 a.m. CST • Updated: Wednesday, Jan. 15, 2014 7:57 a.m. CST

ELBURN – Whenever real estate broker Brett Rodgers shows the now-shuttered Papa G’s at 250 S. Main St., Elburn, he said four or five more people will just pull into the parking lot and ask to see it, too.

“We are proactively trying to find the right fit,” said Rodgers, a broker with Marcus and Millichap’s, a national commercial real estate and investment firm. “Its closure left a hole. It was a destination restaurant for the area. We would like to see a refreshed restaurant concept go in there with the same type of service.”

Papa G’s is 7,464 square feet on 1.41 acres and is being offered for sale at $990,000. The one-story building was built in 1987 and has 100 parking spaces, according to the company’s information

Rodgers said Papa G’s shut down in September because of too much debt coupled with a turndown in the market.

“The location supports a strong business there – 20,000 cars go by every day. It was just more of a financing issue than the core business,” Rodgers said. “They were running a good amount of sales, even when they closed. The previous debt on it was just too much to sustain the business.”

According to Kane County property records, Papa G’s previous owner defaulted on a loan of nearly $2.52 million. Amresco Commercial Finance of Boise, Idaho, acquired the note and foreclosed on the property, records show.

Rodgers said he represents Amresco in trying to sell the property.

“He was up against a soft market with a different set of financing,” Rodgers said of the previous owner. “Now, it’s a much lower overhead with a better economy. ... The building is in great shape. It was fully remodeled in the 1990s.”

Rodgers said he also has a personal connection to Papa G’s.

“I grew up in St. Charles, graduated in 1989, so I have a vested interest in seeing a good fit there,” Rodgers said.

The Papa G’s property was previously known as Hanson’s Back 80 Restaurant, Rodgers said, and it was purchased and converted to Papa G’s in the early 1990s.

Rodgers said he has met with a half-dozen serious would-be buyers who have the ability to buy the property, as well as at least two calls a day of possible new owners or investors who are interested.

“It was fully renovated and ran as a successful operation for nearly 20 years,” Rodgers said. “Our hope is that a new owner for the property can come in with a fresh business or restaurant concept that will benefit from a lower overhead level and in an improving economy to run a successful business from the site.”

For information about the Papa G’s property, Rodgers can be reached at Marcus and Millichap’s Chicago-O’Hare office at 312-351-5000.

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