MEMPHIS, TN—In a deal that demonstrates investor appetite for quality assets in tertiary markets, a 40,488-square foot retail center in Bolivar, TN, has traded hands. The sale price was $2.165 million, or $327.13 per foot. The property is 100% occupied by Tractor Supply Company, Dollar Tree, and a Tennessee district attorney office.
The buyer is an investor out of Clayton, Mo. and the seller is a developer from Birmingham, Mich. Bryan Belk and Mac McCall of Franklin Street Real Estate Services represented the seller in the transaction
“This was one of the first stabilized tertiary market deals to trade since the downfall below a 10% CAP,” Belk tells GlobeSt.com. “Pricing is improving for tertiary market deals because of the influx of capital to core markets. This is creating such competition that investors are starting to invest again in smaller markets, like Bolivar, if the properties have credit-worthy tenants.”
The property is located at 1361 W. Market St., about 60 miles east of Memphis. Tractor Supply Company is a large retail chain offering a variety of agricultural and home improvement supplies, workwear, casual clothing, footwear, and other outdoor supplies with more than 1043 stores in 44 states. Dollar Tree operates more than 4,400 stores located throughout 48 U.S. states.
Belk says the deal was attractive to buyers due to the solid credit of tenants Dollar Tree and Tractor Supply Company. Both are highly sought-after tenants with aggressive expansion plans and steady traffic, he explains, especially with Tractor Supply Company being the largest retail farm and ranch chain in the U.S. and Dollar Tree continuing to be the largest and most successful single-price-point retailer in the country.
“Pricing was strong for a small-town shopping center like this one,” Belk says. “Investors were attracted to this deal because Tractor Supply is a tenant that draws customers from all over. The next closest Tractor Supply to this location was 30 miles away. This allows the other tenants to benefit from shoppers coming from much further distances than your normal three- or five-mile radius.”