X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ELIZABETHTON, TN-HT Group LLC, an Atlanta-based retail value-add operator/investor, has acquired a 320,371-square-foot shopping center portfolio for $12 million. The five-asset package featuring properties throughout Tennessee was sold by New York City-based Centro Properties Group in line with the company’s strategy, says Fain Hicks, vice president with Atlanta-based NAI Brannen Goddard, which represented the seller in the deal.

“Centro Properties is divesting a number of properties to raise cash at this point,” Hicks tells GlobeSt.com of the retail property ownership and services organization. “We are working with them on a number of other listings, primarily in the Southeast, and this is the first of them to close.” He says Centro is looking to sell B and B-plus neighborhood and community shopping centers, in addition to some power center properties.

HT Group was attracted to the value-add portfolio as it recognized the opportunity to reposition and refurbish the properties, which were all geographically desirable to them, says Hicks. The acquisition consists of five Tennessee assets with major tenants including Food Lion, Dollar General, Family Dollar, Burke’s Outlet, AutoZone and Movie Gallery. The buyer plans to hold the assets long-term, notes Hicks.

The largest property involved in the deal is the 92,499-square-foot West Towne Square at 101 Hudson St. in Elizabethton. The property is currently 61% occupied with average rental rates of $7.59 per square foot. The Apison Crossing property at 9408 Apison Pike in Ooltewah totals 79,048 square feet with 29% occupancy and average rents of $7.42. The remaining three assets include Madison Street Station in Shelbyville, Saddletree Village in Columbia and Stone East Plaza in Kingsport, which range in size from 45,800 square feet to 56,766 square feet in size with occupancy levels from 85% to 95%.

These types of value-add transactions may be the only retail activity on the horizon for a while, Ty Underwood, vice president with NAI Brannen Goddard, tells GlobeSt.com. “There are more opportunity value-add buyers that are active right now as opposed to stabilized buyers,” he says. “We think that’s true of retail overall, and we will continue to see that as prices adjust.” The brokerage also projects that institutional and public company owner/operators will probably continue to sell assets in portfolio dispositions.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.