Third Tier Non-Grocery Anchored Shopping Center Trades

 ICSC RECON is coming up and GlobeSt.com has a month of special coverage in the works. Don't miss a bit of it. Click here for more information.

TAMPA, FL—You know the retail market is gaining steam when you see non-grocery anchored shopping centers trading in second and third tier markets. That’s the story behind Collins Park Commons shopping center in Plant City, Fla.

Plaza Advisors just brokered the sale of the small city shopping center for an undisclosed amount. The asset is located at the intersection of SR 39 and Park Road and spans 37,458 square feet of leasable space. The anchor: a 29,000-square-foot Tractor Supply Store. The shopping center is 90% occupied.

“Tractor Supply occupies 77% of the center, is a national credit tenant and their lease runs through 2020,” Jim Michalak, managing partner at Plaza Advisors, tells GlobeSt.com. “The cash flow is very safe and secure.” Plaza Advisors represented the seller, RCG Ventures, in the deal. Coastal Equities acquired the asset.

“This was a relatively small transaction in terms of economics,” Michalak says. “What this deal signals is the return of the capital markets for various size deals.”

For RCG’s part, the retail real estate firm has been shuffling its assets lately. In November, RCG sold off Jasper Plaza, a 78,140-square-foot shopping center in Jasper, Ala. Tractor Supply was also the anchor tenant in that retail outlet. RCG also sold Country Park Plaza in November. Country Park is a 60,750-square-foot shopping center anchored by Food World.

But RCG was also busy with new projects late last year, including a new development in the Charlotte MSA. The company acquired the former 55,000-sqaure-foot Carolina Harley Davidson dealership and is redeveloping the property into a free-standing side-by-side Toys “R” Us and Babies “R” Us. RCG also acquired East Athens Marketplace in Athens, Ga. and Point Plaza in Bayonet, Fla., as well as a handful of other assets across the Southeast and Midwest.