A new owner has emerged for The Shops at Barnes Crossing, a 75,000-square-foot neighborhood shopping center anchored by Bed Bath & Beyond, Dollar Tree, and David’s Bridal in Tupelo, Mississippi.
The transaction closed for approximately $8.72 million, representing a cap rate of 8.2 percent, one of the lowest in the state of Mississippi for this type of retail property.
Eric Wohl, executive vice president of Hanley Investment Group Real Estate Advisors represented the seller, RCG Ventures LLC of Atlanta, Georgia, a privately-funded real estate investment group that acquires and develops commercial real estate throughout the U.S.
Joseph Montgomery from Colliers Investment Sales in Atlanta, Georgia, spoke for the buyer, a private investor based out of Athens, Georgia.
“This transaction had it all: a 1031 exchange buyer who we helped navigate through a CMBS loan assumption; getting the buyer comfortable with the non-credit local tenants on shorter term leases, one of which that hadn’t yet opened for business; and working around deferred maintenance issues,” Wohl said in prepared remarks.
According to Wohl, The Shops at Barnes Crossing is a great example of an institutional-style investment in a strong secondary/tertiary market. “With cap rates on NNN investments at historically low levels, many NNN investors are now looking at multi-tenant retail investments in markets where they can get a significantly better yield,” he added.
Built in 2004, The Shops at Barnes Crossing was 97 percent leased at the time of sale. The property is situated at 3944-3952 North Gloster St., on 8.18 acres at the signalized intersection of North Gloster Street and Symphony Lane. Its neighbors include Walmart Supercenter across the street to the west and the Mall at Barnes Crossing to the east.