BLOOMFIELD HILLS, MICH. — Vision Growth Partners has entered into an agreement to acquire 65 salons in Michigan from Regis Corp. (NYSE: RGS). The store acquisitions will take place in small groups and will be completed by spring 2019. Financial terms of the transaction were not disclosed. The stores are currently branded as BoRics, Hair Masters and Fiesta Salons, but will transition into Supercuts franchises upon acquisition. The agreement also includes 13 existing Supercuts corporate stores. Super C Group LLC, an entity managed by Vision Growth Partners, will operate the salons. In addition to the acquisitions, Super C Group plans to open 10 new Supercuts locations in Michigan over the next several years, making the entity the largest Supercuts franchisee in the Midwest. “We are very excited to enter the salon space in a significant way in our home state of Michigan,” said Michael Sarafa, managing partner of Vision Growth and Super C Group. “Regis is a great partner with great employees, and we look forward to growing the Supercuts brand and building a culture of teamwork and success.” Over the next 10 months, Super C Group will renovate the acquired properties. The investment level will vary by location, but Crain’s …
ATLANTA — While the development pipeline for industrial real estate is at peak capacity, retail’s new store inventory is taking a back seat. Paul Xhajanka, division real estate manager of Kroger, said that his company is breaking from the past when it would open hundreds of stores a year. “If you look at our store count for the next three to five years, we’re only going to open 20 to 25 stores across our various platforms,” said Xhajanka, referring to Kroger’s portfolio of grocery brands, which include Mariano’s, Harris Teeter and Ralphs. “Target is opening 10 to 20 smaller stores a year, and even Walmart is down to 10 stores a year. All of us are shrinking our inventory of new stores down. Retailers are building more distribution centers, not stores.” Xhajanka’s comments were made during the “Industrial Brokers and Expanding Retailers” panel at the first annual Intersection of Industrial and Retail in the Southeast conference, held Thursday, Aug. 23 at the Westin Buckhead in Atlanta. Sponsored by InterFace Conference Group and Southeast Real Estate Business, the half-day event drew more than 170 industrial and retail real estate professionals across the Southeast. Retailers, along with global companies like Amazon and Wayfair, are the …
KATY, TEXAS — NAI Partners, through its Investment Fund II vehicle, has acquired Royal Montreal Plaza, a 40,300-square-foot retail center in Katy, a western suburb of Houston. The property was 97 percent leased at the time of sale to a mix of regional and local tenants. Andrew Pappas and Adam Hawkins of NAI Partners negotiated the acquisition. Todd Carlson of Hunington Properties represented the undisclosed seller. Green Bank provided debt for the transaction.
TAMPA, FLA. — Cushman & Wakefield has arranged the $27 million sale of Tampa Bay Center, a 142,350-square-foot shopping center in Tampa. Jason Donald, Patrick Berman and Todd Tolbert of Cushman & Wakefield arranged the transaction on behalf of the seller, Five RE Tampa Bay Center LLC. Equity Management Partners LLC acquired the property. The previous ownership invested $5 million to renovate the center, which was formerly anchored by Kmart. Tampa Bay Center was 97 percent leased at the time of sale to tenants such as Ashley HomeStore, Floor & Décor, The Tile Shop, Dollar Tree, Metro PCS and a freestanding WingHouse restaurant.
KNOXVILLE, TENN. — The Shopping Center Group (TSCG) has arranged the sale of South Grove, an 89,021-square-foot retail center located near the entrance to Smokey Mountain National Park in Knoxville. Broad Reach Retail Acquisition Co. LLC acquired the asset. Other terms of the deal were not disclosed. A 44,029-square-foot Food City anchors the center, which is also home to Pet Supplies Plus, Great Clips and Gondolier. Lowe’s Home Improvement shadow-anchors the center. South Grove includes a vacant 15,150-square-foot space formerly occupied by Goody’s, offering a value-add opportunity for the new ownership, as well as a two-tenant outparcel building totaling 5,900 square feet. Broad Reach Retail also acquired three undeveloped parcels totaling seven acres adjacent to the property for future expansion.
OVERLAND PARK, KAN. — Parisi Café and Evolve Juicery & Kitchen have signed leases to occupy a combined 4,135 square feet of ground-level retail space at The Vue in Overland Park. Hunt Midwest is developing the $49 million apartment project. Parisi will occupy 2,293 square feet, including a 400-square-foot outdoor patio. Upon opening in early 2019, the café will serve espresso and coffee drinks, pastries, sandwiches and soups. This is the brand’s second location in metro Kansas City. Evolve will offer a selection of freshly prepared meals, side dishes and organic juices in its 1,842-square-foot space. The Vue will include 219 apartment units above 8,650 square feet. Residents are scheduled to begin moving into the property in December.
The Dallas retail market has been on a historic run over the last five years. Dallas is attracting significant attention from foreign and domestic retail investors alike for several reasons. Cap rates continue to compress, big box spaces are experiencing steady absorption, occupancy is at an all-time high of 94.6 percent, unemployment is at a historic low of 3.7 percent, population growth is holding steady and residential development remains robust. The Dallas-Fort Worth (DFW) MSA recently ranked second in the Americas for real estate investor interest, according to a recent poll conducted by CBRE. In particular, there has been a strong increase in demand for retail properties from California buyers. Many of these investors are used to paying 4 to 5 percent cap rates. So when these California buyers have the opportunity to invest in a market showing stronger signs of growth than their local regions, they jump at the chance. According to CoStar Group, over the last 18 months, the average cap rate for a Dallas retail asset purchased by a California buyer was 6.1 percent. In contrast, the average for a Texas-based buyer was 7 percent. This statistic clearly shows that private retail investors based in California are …
WESTLAKE VILLAGE, CALIF. — Sterling Organization has purchased North Ranch Gateway, a shopping center located at the intersection of Lindero Canyon Road and Thousand Oaks Boulevard in Westlake Village. The asset was acquired on behalf of Sterling Value Add Partners LLL, one of Sterling’s latest institutional funds, for $35 million Preston Fetrow and Sam Alison of CBRE brokered the transaction. Originally built in 1989, the 86,520-square-foot center recently underwent significant renovations. TJ Maxx, Bank of America, Dunkin’ Donuts, Subway, Baja Fresh Mexican Grill, 9 Round Kickboxing, Mathnasium and Domino’s Pizza are tenants at the property, which was 74 percent occupied at the time of sale.
FORT WORTH, TEXAS — Davidson Bogel Real Estate has arranged the sale of 2800 Bledsoe, a 22,000-square-foot retail center located in the West 7th Entertainment District in Fort Worth. The property was 100 percent leased at the time of sale to tenants such as Whisky Garden, Trophy Ranch and The Local. Cameron Deptula of Davidson Bogel represented the seller, TLC Urban, in the transaction. Houston-based Fifth Corner purchased the asset for an undisclosed price.
ATLANTA — Braves Development Co. (BDC) has signed four new tenants to The Battery Atlanta in Cobb County. The 1.5 million-square-foot mixed-use development surrounds SunTrust Park, home ballpark of the Atlanta Braves that opened in April 2017. The VOID, a social activity that combines virtual reality technology, physical stages and multi-sensory effects, will open a 9,000-square-foot space adjacent to the Coca-Cola Roxy music venue. Scheduled to open in 2019, the space will mark The VOID’s first location in Georgia. Chattanooga, Tenn.-based Rock/Creek, an outdoor industry retailer, will open a 17,000-square-foot store that carries gear for sports such as kayaking, rock climbing, camping and hiking. Rock/Creek is scheduled to open at the development in 2019. Escape room concept The Escape Game will open a 5,000-square-foot space along Battery Avenue in 2019. The fourth tenant, Allure Nail Bar, will open a 3,100-square-foot location next to Select Shades. Gary Lewis of Gary Lewis & Associates Real Estate represented BDC in the lease transactions with The VOID, Rock/Creek and The Escape Game. JLL assisted with the Allure Nail Bar lease. The new signings come on the heels of the recently announced additions of Silverspot Cinema, Aloft Hotel and Savi Provisions, as well as the announcement …