ATLANTA-RCG Ventures has acquired a 100,000-square-foot class Cshopping center called Shannon Square from Beachwood, Ohio-basedDevelopers Diversified Realty Corp. Financial terms of the dealwere undisclosed.

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Jones Lang LaSalle managing directors Kris Cooper and MargaretCaldwell, along with associate Christie Hawver, represented theseller. RCG Ventures was not available to comment on the sale ofShannon Square, which is located along Jonesboro Road/Highway 138in Union City, just south of Atlanta’s central businessdistrict.

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“This was not a distressed deal,” Cooper tells GlobeSt.com. “Butit’s not a Class A deal, either. This is your run-of-the-mill classC product—not the kind of product that’s been en vogue during thepast couple of years. There’s nothing sexy about the product or itslocation. There’s no big anchor and no grocery story. There’s nosizzle.”

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Shannon Square is anchored by Citi Trends, Dollar Tree andFarmer’s Home Furniture and shadow anchored by Unclaimed Freight.The vacancy rate is only about 20%, compared to about 12 percent inthe greater Atlanta market, according to Marcus & Millichap’ssecond quarter Atlanta retail report.

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Multi-tenant transaction velocity gained momentum in early 2010after nearly coming to a screeching halt last year. Mostyear-to-date activity has involved small strip center properties.Shannon Square fits into that profile.

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“There is a lot of marginal product out there,” Fain Hicks,senior vice president at NAI Brannen Goddard in Atlanta, tellsGlobeSt.com. “Properties in more challenging locations with morechallenging rent rolls become a price-per-square foot buy. Thebuyers who are most capable of handling those types of propertiesare in tune with what rents can be achieved.”

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Although the sale price of Shannon Square is undisclosed, Coopersays RCG Ventures is known for acquiring class B and class C retailproperties. As Cooper sees it, RCG can add value to the propertybecause the company understands B and C tenants and how to dealwith older properties. “Shannon Square is right up their alley,”Cooper says. “We just haven’t seen much of this product type in thelocal market.”

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RCG has been snapping up retail centers across the southeast allyear, including the Northside Plaza in Henderson, N.C., LakeshoreCrossing in Gainesville, Ga., Tiffany Square in Rocky Mount, N.C.,and Hampton Plaza in Clarksville, Tenn. RCG continues to expand itsportfolio of properties totaling more than 4 million square feetand is on pace to acquire $75 million worth of value-added assetsin 2010.

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