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ATHENS, GA-Atlanta-based Mimms Enterprises has picked a strategically located regional shopping center, 60 miles northeast of Downtown Atlanta, for a song, area retail brokers familiar with the Perimeter Square property here tell GlobeSt.com.

Brokers say the $8.4 million Mimms paid GMAC Commercial Mortgage Corp. of Horsham, PA is below replacement cost of comparable ventures. The property’s $25.97 per-sf sale price is about half of the estimated minimum hard construction cost of $50 per sf for a shopping center of Perimeter Square’s 321,549-sf dimensions, brokers and construction industry sources tell GlobeSt.com.

A 30,000-sf TJ Maxx anchors the property in this University of Georgia college city of 101,489 population. A 110,580-sf Wal-Mart store and a 27,211-sf Food Lion grocery store formerly anchored the center. Jon Kleinberg, vice president, investment services of Atlanta-based Transwestern Commercial Services, and Transwestern broker Kevin Markwordt negotiated for GMACCM. Atlanta-based LGB Realty brokers Karen R. Friedenberg and Larry G. Brown represented the buyer.

“Both the Wal-Mart and Food Lion leases have substantial remaining term,” Kleinberg says. “This stable credit income stream combined with the significant value-added component helped to create a highly attractive investment opportunity that is well-suited to a buyer such as Mimms Enterprises.”

The broker says the center is “well-positioned for re-leasing, as well as potential redevelopment due to the existing vacant space opportunities and the overall site size of 39-plus acres.” Kleinberg and Markwordt began marketing the center for sale late last year. “Investor interest was considerable,” Kleinberg says.

The broker says the center is located in a major Athens retail corridor where average household income is $67,955. Perimeter Square is directly across from the 680,135-sf Georgia Square Mall whose tenant roll includes Sears, Rich’s-Macy’s, Belk’s and JCPenney.

The deal was done at this time because GMACCM had real estate assets “that needed to be sold,” Kleinberg tells GlobeSt.com. He says the property was priced low for a quick sale for several reasons. Potential buyers had “questions about the retail viability of the site–no visibility from road; and no significant leasing recently done with continued loss of tenants to other centers.” Still, the property received 12 offers, Kleinberg says. The average asking base rent range is $11 to $14 per sf.

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