MEMPHIS—Countryside Center, a retail center ina Memphis suburb, just sold for a 9% cap rate. Dollar Generalanchors the 35,500-square foot neighborhood shoppingcenter. The sale price was not disclosed.

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Gary Shanks, a broker at ShoppingCenter Group, represented the seller, a Midwest-based lifeinsurance company. John Reed, a broker at Shopping Center Group,represented the buyer, a private California-based investor.

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“Typically, neighborhood centers trade at higher caprates as was the case with Countryside Center,” saysReed. The purchaser saw the long-term potential value of thisasset and owns similar properties throughout the Southeast andMidwest, thus making the center an attractive buy.”

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What's the upside? Countryside Center sits in an establishedretail corridor on Highway 64 in Shelby County.According to Shopping Center Group, this Memphis submarket reportsa population of over 165,000 people and an average household incomeof over $70,000 within a five-mile radius.

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The retail center is 75% leased with 8,900 square feet ofavailable space and a one-acre outparcel. Tenants include Subway,Auto Radio, Math Made Simple, and Continental Tire.

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Memphis's vacancy rate is 9.6%, according to CoStar. The firmreports net absorption was positive 54,168 square feet. What'smore, CoStar says, vacant sublease space increased by 30,814 squarefeet. By way of comparison net absorption was positive 216,127square feet in the fourth quarter of 2013.

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