SOUTH BEND, IN—Next Realty has just completedthe acquisition of a Best Buy net leased retailproperty in Mishawaka, a suburb of South Bend. The acquisition wason behalf of Next Realty Investment Fund VII. Thepurchase price was not disclosed.

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The 50,000-square-feet property sits at 6502 Grape Rd. along thetown's main retail corridor, about 2.5 miles from theUniversity of Notre Dame. Furthermore,University Park Mall, owned by SimonProperties and one of the region's major retail centers,sits directly across the street and draws visitors from a 65-mileradius. Overall retail vacancy within the Mishawaka submarket isonly 4.4% with no large retail vacancies, according to Nextofficials.

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“This acquisition is a great opportunity to acquire awell-performing retail asset that essentially is located at “Mainand Main” in Mishawaka's primary retail district,” saysEteri Zaslavsky, director of acquisitions for NextRealty.

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The building was originally developed for ServiceMerchandise. It was refurbished 10 years ago and convertedinto a Best Buy. The tenant has another ten years of term remainingon its lease.

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According to Zaslavsky, even though Best Buy stores today areabout one-third smaller, this retailer has adapted astore-within-a-store concept and leases space in the facility totenants such as Google, Verizonand Comcast.

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This location is in the top 25% in sales for the retailer, sheadds, and it is the only Best Buy store within a 30-mile radius.“We liked the opportunity for a variety of different reasons. Thisretail strategy to create stores-within-a-store further enhancedthe appeal of this investment.”

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.