ATLANTA-Locally based Sterling Real Estate Capital LLC says it raised $6.3 million in joint-venture equity for the purchase of the 126,000-square-foot Shops Around Lenox in the Buckhead submarket. Baltimore-based Alex. Brown Realty Inc. provided that amount to the JV, with locally based Healey Weatherholtz Properties LLC contributing another $4.2 million.
The actual purchase price of the asset was not immediately available, though Healey Weatherholz says it plans $5 million worth of renovations and security upgrades to the 30-year-old, single-story complex. State Farm Life Insurance Co. provided debt financing.
“An outstanding retail operator combined with an experienced equity partner and an irreplaceable retail location will make the repositioning of this asset a great success,” says Peter Fish, managing director of Sterling Real Estate in Atlanta. Redevelopment is scheduled to be finished by next spring.
Quill Healey II, co-CEO of Healey Weatherholtz, terms the Shops Around Lenox as a terrific opportunity. “Rarely does a seven-acre site become available between a top-performing Neiman Marcus and a new W Hotel,” he says.
Although the center is currently less than half-occupied, brokers say such opportunities abound for investors willing to make a long-term commitment. “Properties with the intrinsic value of the Shops Around Lenox rarely trade hands,” notes Peter Bancroft, senior vice president with Alex. Brown Realty.