Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MEMPHIS-Time Equities Inc. has purchased Lamar Crossing, a 64,800-square-foot retail center for $6.6 million in an all-cash transaction. The seller is Lamar South LLC based in Chattanooga. A 1.7-acre parcel of land with entitlements for an additional 20,000 square feet of retail has been included in the deal. At the moment, New York-based TEI does not have plans for the site, says asset manager Dean Bodnar, but will probably look to build on it in three to five years.

The existing shopping center on the site was developed in 2007 and is currently 96% occupied. Tenants include CitiTrends, Dollar Tree, Shoe Show, Ashley Stewart, Simply Fashions, SunTrust Bank and Marty’s. Leasing rates at the property range from $10 per square foot to $16 per square foot for the larger spaces, says Ami Ziff, asset manager with TEI.

“According to our data, the Memphis market is an underserved retail market with a dense population and a strong service sector supported by a growing convention and tourism industry,” says Bodnar. “Our plan for the property is to leverage national anchors to enhance the strength of the inline tenant mix.”

TEI currently owns another 75,000 square feet in Memphis and is looking to acquire more retail properties in the Southeast based on demographics and population increases, including the continued migration trend of Northeasterners, says Bodnar. “We will continue to look for properties with an emphasis on strong infill locations,” he reports.

Vacancy rates for the Memphis retail market have been stabilizing, and were at 9.5% at the end of the third quarter, according to the latest CB Richard Ellis Marketview report. Average rental rates have risen slightly to $11.41 per square foot, the highest level in four years, reports the brokerage. Construction activity has increased from 161,907 square feet to 225,942 square feet over the last quarter despite difficult market conditions.

“The retail sector in Memphis has grown significantly in recent years as a result of a diverse economy and the expansion of big-box retailers and grocery-anchored neighborhood centers,” says Ziff. “As a major center for agriculture, medicine, telecommunications and distribution, we feel Memphis is a strong market poised for growth.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.