SHAWNEE, KAN. — Diversified Commercial Capital has arranged a $6.6 million acquisition and improvement loan for an 80,403-square-foot property occupied by Rush Funplex in Shawnee. The family entertainment center is located within a multi-tenant retail center along the Shawnee Mission Parkway. Diversified arranged the fixed-rate, five-year loan on behalf of the undisclosed borrower through a regional lender.
LANSING, MICH. — Strategic Foods, doing business as Carrie’s Kitchen, has signed a 4,040-square-foot retail lease in Lansing. Carrie’s Kitchen, a soul food restaurant, will take the space formerly home to Wing Heaven Sports. Zach Burk and Bill McLeod of Gerdom Realty & Investment represented the tenant in the lease. Scott Adams of NAI Mid-Michigan represented the undisclosed landlord.
By Brad Belden, Colliers Now that the final numbers are in for 2023, we can undoubtedly say that the worst of COVID is behind us in the world of retail leasing. 2023 saw increased rental rates, longer-term deals and record low vacancy rates across the nation. It’s great news; retail is not dead and it could even be argued that it’s never been busier. But it’s also… different. On average, leases are shrinking and how space is used is changing. And demand, coupled with customers’ increased desire to visit evolving concepts, is making for another busy year ahead for this segment of the industry. So far, 2024 is off to a great start and this year’s trends are already taking form. On the consumer side, a significant shift back to bricks-and-mortar retail is already underway as consumers seek to connect with retailers again and make shopping an “experience.” On the retailer side, two factors are driving change: the emergence of AI, which is allowing many retailers to analyze and customize the customer experience while improving operations behind the scenes to boost sales (regardless of the tenant type, retail tenants in Chicago and across the U.S. have one thing in common: …
Developers and owners of net lease properties have been used to receiving high prices for their assets — fueled by low debt costs for buyers — over the past decade. With rising interest rates, that has changed. Cap rates have been rising and capital is harder to obtain, be it for new net lease development or acquisition of existing assets. That has narrowed the demand, resulting in a lower sales volume over the past year. The volume of single-tenant net lease investment sales was down about 34 percent in 2023 compared to 2022, according to Northmarq’s fourth-quarter 2023 Market Snapshot for Single-Tenant Retail. The average cap rate, meanwhile, rose from 5.62 percent in 2022 to 6.14 percent in 2023. Development of new single-tenant net lease deals is stymied by access to capital, with many regional banks — the lifeline of small developers — on the sidelines. Shopping Center Business interviewed a number of executives in the net lease sector, and studied research from leading firms for our annual overview of the single-tenant net lease property sector. Dealflow and Trends While deal velocity is down, deals are still happening. Today, deals are much more individualized, and both parties usually have to …
GLEN BURNIE, MD. — JLL has secured a $22 million loan for the refinancing of Arundel Plaza, a 282,039-square-foot shopping center located at 6620 Governor Ritchie Highway in Glen Burnie, a southern suburb of Baltimore. Michael Klein, Jon Mikula, Evan Parker and John Cumming of JLL arranged the five-year, fixed-rate loan through a life company lender on behalf of the Singapore-based borrower, United Hampshire U.S. REIT. Arundel Plaza was fully leased at the time of financing to tenants including Lowe’s Home Improvement, Giant Food, Jersey Mike’s, FedEx, Hook & Reel, Panda Express and Chipotle Mexican Grill. The six-building property was built in 1967 and renovated in 2017.
OCALA, FLA. — SRS Real Estate Partners has brokered the $3.7 million sale of a 6,119-square-foot gas station and convenience store situated on 2.3 acres at 8300 S.W. 100th St. in Ocala, a city in Central Florida. The newly constructed property has a 20-year, corporate-guaranteed ground lease in place with Wawa. Patrick Nutt and William Wamble of SRS represented the seller, an unnamed development firm based in Florida, in the transaction. The undisclosed, privately held buyer is based in Arizona and purchased the property in a 1031 exchange.
LAKE WORTH, TEXAS —Dallas-based investment firm Vista Property has purchased Lake Worth Marketplace, a 197,553-square-foot shopping center located on the northwestern outskirts of Fort Worth. Built in phases between 2005 and 2007, the center was 93 percent leased at the time of sale to tenants such as Kohl’s, Marshalls, Burlington, pOpshelf, Lane Bryant and Bath & Body Works. Barry Brown, Chris Gerard, Erin Lazarus, Keenan Ryan and Ben Pollack of JLL represented the undisclosed seller in the transaction.
MERCED, CALIF. — Hanley Investment Group Real Estate Advisors has arranged the sales of two newly constructed, adjacent, single-tenant retail properties in the San Joaquin Valley city of Merced. Two individual private buyers purchased the assets in separate transactions totaling $8.2 million. In both transactions, Bill Asher and Jeff Lefko of Hanley represented the developer and seller, Glendale-based Chase Partners. A Los Angeles-based private investor acquired the first asset for $5.3 million. Constructed in 2023, the 4,088-square-foot convenience store and gas station is located at 1995 W. Olive Ave. 7-Eleven occupies the building under a new, corporate, 15-year, triple-net lease. Nicholas Borrelli of Coldwell Banker Commercial George Realty in Arcadia represented the buyer in the deal. A Los Angeles-based private investor purchased the second building for $2.9 million. Michael Mehdizadeh of Los Angeles represented the buyer in the deal. Located at 1993 W. Olive Ave., Starbucks occupies the 1,000-square-foot, drive-thru-only building under a new, corporate, 10-year, triple-net lease.
MINNEAPOLIS — Marcus & Millichap has arranged the sale of Blaine Strip Center in Minneapolis for $1.3 million. The 14,005-square-foot retail property is located at 12050 Central Ave. NE. Tom Gommels of Marcus & Millichap represented the buyer, an individual trust completing a 1031 exchange. According to Marcus & Millichap, the asset traded at an above-market cap rate and features below-market rents.
CHATTANOOGA, TENN. — Marcus & Millichap has brokered the $3.6 million sale of Brainerd Market Center, a 44,800-square-foot retail center located at 480 Greenway Drive in Chattanooga. The property was 80 percent leased at the time of sale to a mix of national, regional and local tenants, with the average tenant tenure being 14 years. Situated two miles from Chattanooga Metropolitan Airport, Brainerd Market Center is shadow-anchored by a Walmart Supercenter and is adjacent to East Gate Town Center. Zach Taylor of Marcus & Millichap’s Atlanta office represented the seller, an undisclosed Tennessee-based developer, in the transaction. Jody McKibben, Marcus & Millichap’s broker of record in Tennessee, assisted in closing the transaction.
