Investors Clamour for Grocery-Anchored Retail

MINNEAPOLIS—The US as a whole might be over-retailed, and e-commerce is definitely eating into many stores’ customer bases, but the right properties in the right location still attract big dollars.   

Stan Johnson Co., a Tulsa, OK-based net lease brokerage firm, has completed the sale of Penn & American – a 58,531-square-foot retail center anchored by Fresh Thyme Farmers Market. The center is located at 2100 W. 80^th Street, Bloomington, MN, a Minneapolis suburb. The buyer was WI-based SARA Investment Real Estate, and the asset traded for $19 million on July 11, 2018.

“Given the stellar location and Stan Johnson’s extensive marketing reach, we had interest from buyers across the US and internationally that led to nearly 20 offers,” says Tom Fritz, senior director in the company’s Chicago office. “The amount of interest we received from institutional and private investors speaks to the strength of the Minneapolis market, as well as the developer’s ability to deliver an A+ quality property.”

Grocery-anchored centers are especially appealing to investors. And Fresh Thyme, since its founding in 2012, has proven popular with the many shoppers looking for fresher food options. According to Supermarket News, the chain, currently located mostly in the Midwest, had 66 stores by the end of 2017 and plans to open another 10 in 2018.

Stan Johnson Co.’s team of Fritz, Brandon Duff, Matt Spangenberg, and Mackenzie Wolfgram represented the seller, a Minneapolis-based developer. The buyer represented itself.