COLE BUYS LAFAYETTE PAVILIONS FOR $54 MILLION
LAFAYETTE, IN—A REIT sponsored and managed by Phoenix-based Cole Capital just acquired Lafayette Pavilions Shopping Center in Lafayette, IN for $54 million, another sign that secondary and tertiary markets can attract big-pocketed investors. The 348,531-square-foot regional shopping center is located at the southwest corner of State Rd. 26 and Creasy Ln. and is anchored by Gordmans, Hobby Lobby, Gander Mountain, and TJ Maxx.
An investment sales team from Oakbrook Terrace, IL-based Mid-America Real Estate Corp. brokered the sale. Rick Drogosz and Ben Wineman of Mid-America, in cooperation with Mid-America Real Estate – Indiana LLC, were the exclusive brokers in the transaction on behalf of the seller, Dallas-based Invesco Real Estate.
“There is a growing trend of investors looking to acquire quality anchored centers in secondary and tertiary markets due to higher yields and lack of product in infill major markets,” says Kevin Fryman, senior vice president at Irvine, CA-based Hanley Investment Group. As reported in GlobeSt.com, Hanley, which was not involved in the Lafayette deal, recently completed the sale of seven shopping centers for Phillips Edison, which concentrates on buying retail in secondary markets.
“As confidence in the retail investment market improves and lenders are willing to provide attractive financing into secondary markets,” he adds, “we are continuing to see demand increase into markets where there was very little velocity only a few years ago.”