A trophy, 13.6k sf multi-tenant retail property in Provo, UT was purchased by a private investor out of Los Angeles. The property, situated at the entrance to Brigham Young University, was sold by Peninsula Retail Partners of Newport Beach, the developer of the property. The sale price could not be disclosed.
Located on 1.52 acres at the signalized intersection of University Ave and Bulldog Blvd, the property consists of two multi-tenant retail buildings built in 2014 that are adjacent to a new CVS/pharmacy (CVS was not part of the sale.) The property was 93 percent occupied at the time of the sale and includes tenants Noodles & Company, Rumbi Island Grill, Mooyah, Firehouse Subs, Papa John’s Pizza and Rita’s Ice.
Ed Hanley, president of Hanley Investment Group, and Jeremy McChesney, a senior vice president, represented both parties in the transaction. According to McChesney, completing the transaction required working with the buyer and adjacent property owner to obtain an easement.
“We were able to leverage the firm’s relationships to match the 1031 exchange buyer requirements with the seller’s needs without formally marketing the property,” said McChesney. “The buyer understood the Provo market and was very attracted to this property, the quality of the tenants, and its landmark location at the entrance to BYU.”
“This transaction is a prime example of California investors exchanging out of locally-owned retail property and buying out of state, where they feel they can get more for their money,” said Hanley.
Overall, 2015 should be another momentous year for the industry, according to Hanley. “The retail investment market continues to be strong with low interest rates, scarcity of product and record high investor demand. Lower vacancy, sustainable and increasing rental rates, along with select retail tenant growth and expansion are factors that are maintaining investor confidence. Multi-tenant retail investments continue to offer rental growth and better overall yield in today’s market.”