Hager Makes Inroads With $18M-Plus Buy

ATLANTA-Los Angeles-based REIT Hager Pacific Properties has entered the market with the acquisition of the Garden Ridge Portfolio for $18.5 million.

The portfolio consists of two properties, both of which contain a 142,000-sf Garden Ridge home décor and crafts outlet store located on 12 acres. One building is located at 2875 George Busbee Parkway in Kennesaw and the other is located at 1887 Willowtrail Parkway in Norcross. Rob Neal, partner, Hager Pacific Properties tells GlobeSt.com that the acquisitions are a good fit with the company's portfolio due to their close proximity to major highways and other factors.

"We're a value buyer. We look for strong values on a price per sf and return basis. These sales were closed at $65 per sf, which is well below its replacement cost," Neal says. "The downside is on the credit side, but we've underwritten the credit."

The properties were purchased from a trust in which CW Capital Asset Management LLC is a special servicer. Brandon Beeson, vice president of investment services at the PM Realty Group's Dallas office, represented the seller. The buyer represented itself. Michael McGregor, vice president for CW Capital Asset Management LLC, handled the transaction for the seller.

Garden Ridge has 35 locations in 13 states throughout the southeast and midwest. Hager owns properties in California and the Midwest and is currently investing $300 million to $400 million in commercial real estate throughout major metropolitan markets nationwide. Neal adds that they will acquire more properties in Atlanta "if we can find the right property."

"Finding markets with significant leasing activity is fundamental to our overall investment strategy," Hager Pacific Properties' managing partner Adam Milstein says. "Atlanta's leasing activity is comparable to Orange County and San Diego submarkets and we believe that it will continue to remain strong."