Hanley Negotiates Sale of 4 Retail Centers

GlobeSt.com

CINCINNATI—Hanley Investment Group, a real estate brokerage firm that specializes in retail property sales, recently negotiated the purchase of four shopping centers owned by Cincinnati­based institutional investment firm Phillips Edison & Co. The retail properties, which were located in either secondary or tertiary markets, sold for a combined value of over $24 million and totaled about 372,000 square feet. Executive vice president Eric Wohl handled the four separate transactions. Hanley has completed the sale of 11 Phillips Edison properties in 8 months and currently has two additional Phillips Edison­ owned retail properties totaling 248,767 square feet in escrow.

“As yields for multi-tenant retail in primary markets continue to compress, an increasing number of investors are seeking investment opportunities in secondary or tertiary markets across the country to meet their investment requirements,” Wohl tells GlobeSt.com. According to the company, Wohl has completed the sale of nearly 1.7 million square feet of anchored retail located in secondary or tertiary markets outside of California valued at $105 million over the last 9 months.

Wohl negotiated the purchase of Sandy Marketplace, a 100,762 square ­foot grocery and drug ­anchored community shopping center located at 36651­-36911 Highway 26 in Sandy, OR, about 20 miles east of Portland. Bi­Mart, Grocery Outlet and Dollar Tree anchor the shopping center. Built in 1985, Sandy Marketplace sits 9.28 acres and was 100% occupied at the time of the sale. “Sandy Marketplace is located on the only major corridor in Sandy or Mt. Hood,” Wohl says. “The shopping center offers signalized access and traffic counts exceeding 30,800 cars per day.”

In Pensacola, FL, Wohl negotiated the purchase of Ferry Pass Plaza, a 115,198 square­ foot shopping center anchored by Ross Dress for Less, Dollar Tree and a CVS that was not a part of the sale. Built in 1979, the 12.3­acre center is located at 8102 N. Davis Highway and was 100% occupied at the time of the sale.

Wohl also negotiated the purchase of Rivergate Square, an 82,088 square ­foot shopping center located in Madison, TN, at 1558 Gallatin Pike North. It was 98% occupied at the time of the sale. An Office Depot, a Dollar General and a Home Depot not part of the sale anchor the property.

Finally, Wohl completed the sale of Cross Pointe Marketplace, a 73,788 square ­foot grocery­ anchored shopping center located in Chesterfield, VA, about eight miles southwest of Richmond’s CBD. A Food Lion and Bryant & Stratton College anchor the property. Built in 1988, the 10.2­acre center is located at 8201 Hull St. Rd. and was 98% occupied at the time of the sale.

“We were able to negotiate around the short­-term nature of the Food Lion lease with less than spectacular sales figures and having the property’s co-­anchor be a college,” said Wohl. “The buyer felt that the Richmond MSA offered a diverse and balanced economy, a high quality of life and low cost of living, and strong growth prospects.”

“While most investors are focusing on anchored centers within major MSAs, buyers who are willing to purchase assets with a similar tenant mix in small to mid-­size markets are able to take advantage of above market returns at a significantly lower price per square foot,” says Wohl.

He adds that favorable financing was put on each deal and all four transactions closed within nine days of each other. “As confidence in the retail investment market improves and lenders are willing to provide attractive financing for properties located in secondary markets, we will continue to see increased demand in markets where there was very little velocity only a few years ago.”

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