ATLANTA-Institutional investors and national developers are paying top dollar for strategically located neighborhood retail centers throughout the Southeast as two new deals completed by locally based Advantis Real Estate Services Co./GVA indicate.
Inland Real Estate of Oak Brook, IL paid Barclay Group of Dunedin, FL $13.8-million or $207.03 per sf for the one-month-old, 66,414-sf, 94%-leased Village Shoppes at Simonton in suburban Lawrenceville. Brad Luger, executive director, and Larry Randolph, senior director, of Advantis' investment services group negotiated for the seller. Inland represented itself.
"The sale took place rather quickly, with the property on the market for only three weeks and a closing date only 30 days after the contract was fully executed," says Luger. Publix anchors the property. Luger and Randolph have closed $136 million in sales transactions so far in 2004.
Luger and Randolph also teamed in closing a $9.5-million deal for seller Pavilion TK-Dorchester Road LLC of Charlotte, NC. Cronacher Development Corp. of Naples, FL paid $172.65 per sf for the one-year-old, 55,025-sf, 100%-occupied shopping center at 856 Dorchester Rd., Charleston, SC. Mark Drazek of CB Richard Ellis Inc. in Orlando negotiated for Cronacher.
John M. Crossman, a senior vice president of Trammell Crow Co.'s retail investment division, tells GlobeSt.com "any time you see a shopping center price over $100 per sf, you know the buyer is paying a premium for that property." Hugh McWhinnie, executive director, Morgan Stanley Real Estate, says retail properties are being "aggressively pursued by investors in today's market." He isn't surprised anymore by the $100-plus per-sf prices.
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