A private 1031 exchange investor from Eugene, OR paid $13 mil for Keizer Village Shopping Center, a 76.8k sf ($169/sf), 99%-occupied neighborhood shopping center in Keizer, OR. The center is anchored by Physiq Fitness and The Thrift Store.
Keizer Village Shopping Center, located at 3830-3860 River Road North in Keizer, spans 5.18 acres. Built in 1962 and renovated in 2004, the center hosts a mix of national and regional tenants, including Little Caesar’s Pizza, Metro by T-Mobile, Subway, and US Market, along with local anchors Physiq Fitness and The Thrift Store.
The shopping center has long-term tenants with historically high occupancy. Tenants representing 54% of the income have been in the center for at least 10 years.
Keizer Village Shopping Center features an ideal “L-shaped” design with six points of ingress/egress and prominent signage along Cherry Ave and River Rd. The center benefits from limited retail competition and a low vacancy rate of 2.4% in the submarket.
Kevin Fryman of Hanley Investment Group, in association with ParaSell Inc, represented the seller, Cumberland Holdings LLC of Rolling Hills Estates, CA. The buyer was repped by James Kim of Windermere Real Estate/Lane County, also from Eugene.
“We procured a private 1031 exchange investor who was a first-time shopping center buyer and closed escrow at 97% of the asking price,” said Fryman. “We achieved an aggressive cap rate for a shopping center with anchors Physiq Fitness (with five locations) and The Thrift Store (one location). Physiq Fitness is a 10-time winner of ‘Best Gym in the Mid-Valley.’”
“Keizer Village Shopping Center is a prime example of a well-located, multi-tenant net-lease retail investment that continues to attract retail investors,” said Fryman. “The center boasts 100% internet-resistant tenants, including fitness, restaurant, and service tenants, which are highly sought after in today’s market.”