ATLANTA—Brookside Shopping Center, an unanchored center in the Atlanta submarket of Alpharetta, GA, has traded for one of the highest prices per square foot in Metro Atlanta since the downturn in the commercial market in 2008.
Mac McCall of Franklin Street Real Estate Services represented the seller, a shopping center owner in Atlanta. The buyer, an investment company in Atlanta, assumed an existing CMBS loan on the property. McCall tells GlobeSt.com the seller wanted out of managed properties.
“This was one of the most aggressively-priced assets sold since the market collapsed in 2008,” says McCall. “Buyers continue to gravitate towards the highest-quality shopping centers with strong demographics.”
McCall believes the sale of Brookside signals that investors are willing to buy unanchored properties at a premium price. That, he says, is contrary to the past where they have mostly focused on grocery anchored retail properties in this cycle.
“Although this submarket was littered with foreclosed retail properties, we were able to sell the buyer on the 'best of class' characteristics of Brookside and the long-term upside to a patient investor,” says McCall. “The location, tenant mix, and surrounding demographics painted the picture of long-term stability for the property regardless of the surrounding retail property challenges. This is definitely a trendsetter within the market.”
Brookside Shopping Center is located at 4075 Old Milton Parkway in Alpharetta. McCall says the Alpharetta market is a desirable location to tenants and investors. The 23,745-square-foot center was over 95% occupied at the time of sale with strong demographics. Franklin Street research shows more than 190,000 residents within five miles and an average household income of more than $140,000 a year.
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