ATLANTA—Marietta Trade Center, a coveted retail asset on Cobb Parkway that includes a 316,000-square-foot Walmart Supercenter, has traded for $32.8 million. Rothenberg-Rosenfield purchased the property from EDENS.
Josh Rosenfield, director of property acquisitions at Rothenberg-Rosenfield, tells GlobeSt.com the deal was attractive for three key reasons: the Walmart ground lease included in the sale, the adjacent Sam's Club, and the center's daily high-traffic volume. As he sees it, the shopping center caters directly to the surrounding demographics and demonstrates that Internet sales have not hindered the sale of soft goods in physical locations.
“Marietta Trade Center is a highly-trafficked, stable, cash-flowing asset that delivers a return to investors from day one, making it a great addition to our growing Southeast retail portfolio,” says Rosenfield. Marietta Trade Center is 97% leased. There are only four vacant spaces spanning 8,000 square feet.
One interesting aspect of the deal was Rothenberg-Rosenfield’s assumption of the CMBS loan that was on the property. Rosenfield thinks that helped the firm win a deal for which there was plenty of bidders.
“In today's market, the assumption of commercial mortgages requires attention to detail and responsiveness to the lender's questions,” Rosenfield says. “The Marietta Trade Center deal is our third loan assumption in as many years so we expect—and are ready for—the requests for financial and historical information. The process is lengthy as CMBS loans must be re-underwritten and approved by various groups with fiduciary responsibility to the note holders.”
Marietta Trade Center is close to Southern Polytechnic State University, home to 5,800 students and staff, as well as Dobbins Air Force Base, which employs 2,500 full-time associates with nearly 10,000 military personnel assigned to the base. The trade area spans five miles and serves more than 201,000 people in 82,300 households with an average income of $74,000, according to Rosenfield’s research.
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