LAS VEGAS — NorthMarq Capital has secured a $37 million refinancing for Sahara Center, a retail property located at 10000 W. Sahara Ave. in Las Vegas. Scott Monroe of NorthMarq Capital’s Las Vegas office arranged the 10-year term on a 30-year amortization schedule. A conduit CMBS lender provided the capital. Sprouts Farmers Market, TJ Maxx, Petco, Raising Cane’s Chicken Fingers, In-N-Out Burger, Stein Mart and Burlington Coat Factory are major tenants at the 222,883-square-foot retail property.
LAS VEGAS — Hessam Nadji has a simple message for the shopping center community in a tumultuous retail environment: adaptation plus innovation equals opportunity, particularly in an economy with plenty of runway left for growth. “If you take a look at the most dominant technology players that you can think of — Microsoft, Apple and Amazon — they are getting into brick-and-mortar retail every day. Why? Because physical space counts, physical location counts, presence in the community counts, foot traffic counts,” said Nadji, president and CEO of Marcus & Millichap, who delivered a forceful message Monday afternoon to a packed ballroom of several hundred attendees at the Renaissance Hotel in Las Vegas. The event, titled “Marcus & Millichap’s Retail Trends 2018,” was held in conjunction with RECon, an event hosted by the International Council of Shopping Centers (ICSC) that has attracted approximately 37,000 industry professionals and 1,200 exhibitors to the Las Vegas Convention Center. Apple currently operates more than 270 stores in the United States, followed by Microsoft with about 90 stores. Through its $13.7 billion acquisition of Whole Foods Market last year, Amazon controls about 479 stores in the United States and Europe. Conversely, the graveyard of failed retailers …
NEW YORK CITY — The Feil Organization has leased a 1,541-square-foot space to Blue Bottle Coffee on the ground floor of 257 Park Ave. South, a 226,000-square-foot mixed-use building in Manhattan’s Flatiron District. The café, which sells coffee beans less than 48 hours out of the roaster, will have 23 feet of frontage on Park Avenue South. Blue Bottle Coffee joins retail tenants such as Bravo Pizza and FedEx Office Print & Ship Center. Office tenants at the building include the Environmental Defense Fund, OpenSlate and Independence Care System. Drew Weiss, Mark Frankel and Jeff Roseman of Newmark Knight Frank arranged the 10-year lease on behalf of Blue Bottle Coffee, and Randall Briskin of Feil represented the company internally. Blue Bottle Coffee is expected to move into the space in July.
HUTTO, TEXAS — Flix Brewhouse, an entertainment concept that combines the movie theater experience with beer brewing, will open a new venue within The Co-Op District, a mixed-use development under construction in the northeastern Austin metro of Hutto. The number of screens has not yet been determined, but the venue will span approximately 39,000 square feet, according to Community Impact Newspaper. The Hutto location will be Flix Brewhouse’s fourth venue in Texas and ninth overall. Developed by MA Partners, the Co-Op District will include residential, retail and civic components upon completion.
DECATUR, GA. AND CHANDLER, ARIZ. — Westwood Financial LLC has acquired two Sprouts-anchored retail centers located in Decatur and Chandler for a combined $66.2 million. The properties were acquired in separate transactions, and the individual sales prices were not disclosed. In Atlanta, Westwood acquired Decatur Crossing, an 81,900-square-foot shopping center that was constructed in 2017. Atlanta-based Fuqua Development developed and sold the property, according to the Atlanta Business Chronicle. HFF arranged a loan through Unum Group on behalf of Westwood. Decatur Crossing was fully leased at the time of sale. In Chandler, an eastern suburb of Phoenix, Westwood acquired Boardwalk at Andersen Springs. Constructed in 2005, the property is the home of the original Sprouts Farmers Market. HFF arranged an acquisition loan through Nationwide Life Insurance Co. on behalf of Westwood. Boardwalk at Andersen Springs was 97 percent leased at the time of sale.
HEPHZIBAH, GA. AND CAYCE, S.C. — Marcus & Millichap has brokered the $13.4 million sale of two properties leased to Walmart Neighborhood Market in Hephzibah and Cayce. The Hephzibah property is located at 3697 Windsor Spring Road, roughly 14 miles south of Augusta. The property sold for $6.6 million. The Cayce building is located at 1355 Knox Abbott Drive, roughly four miles south of Columbia, and sold for $6.8 million. Both properties span 41,921 square feet and were constructed in 2015. Don McMinn of Marcus & Millichap’s Taylor McMinn Retail Group arranged the transaction on behalf of the seller, Fletcher Bright Co. Harry Collison Jr. of The Real Estate Consortium represented the buyer, McKinley Cos. LLC.
WHEELING, ILL. — The Lynmark Group has broken ground on the retail portion of Wheeling Town Center, including anchor tenant CMX Cinemas, City Works Eatery and Pour House and Starbucks. The developer has also unveiled new tenants such as Mia’s Cantina and 312 Nails & Spa. The 100,000-square-foot commercial plaza is set to open in early 2019. Mexican grill and tequila bar Mia’s Cantina will occupy 4,000 square feet, while 312 Nails & Spa will occupy 2,500 square feet. Wheeling Town Center is a mixed-use development featuring a 300-unit luxury apartment building in addition to retail space.
MANCHESTER, MO. — Kimco Realty Corp. has sold an 89,305-square-foot retail building occupied by Kohl’s in Manchester, a suburb of St. Louis, for $8.6 million. Kohl’s has occupied the property since 1998 and recently executed a 10-year lease extension. The single-tenant building is situated on 9.5 acres at 14425 Andersohn Drive. Marc Mandel, Steve Schrenk and Danny Kaufman of HFF represented Kimco in the sale. The buyer was not disclosed.
LAS VEGAS — E-commerce has disrupted the market for retail real estate on a seismic level, but it has not obliterated the need for brick-and-mortar shops. Instead, the online shopping craze has functioned as an evolutionary mechanism. E-commerce has forced retail operators and landlords to both bolster their digital platforms and enhance their in-store shopping experiences. “Much has been made of the need for brick-and-mortar retail to adapt to e-commerce, but we’ve also seen a shift in the other direction with a number of e-retailers opening brick-and-mortar showrooms to complement online offerings,” said Mike Conway, vice president of national accounts and retailer partnerships at Phillips Edison. “Overall, we’re confident that the future for retail is bright, and we can’t wait to see how these trends continue to unfold.” For consumers, this evolutionary shift means that retailers are looking to interact more with shoppers in their stores. The manner in which retailers enhance the shopping experience varies from concept to concept. But some trends are beginning to emerge, according to a recent report from Phillips Edison, a REIT specializing in grocery-anchored retail properties. And the use of pop-up spaces and showrooms are two of the leading practices for retailers to consider …
ADDISON AND KELLER, TEXAS — Hotworx, a fitness concept that centers on virtual exercise programs in high-temperature settings, will open two new gyms in the Dallas area. The company will open a 2,100-square-foot gym in Addison and a 1,750-square-foot gym in Keller, with both locations targeting August openings. Sean Lockovich of Henry S. Miller Brokerage (HSM) represented Hotworx in both lease negotiations. The gyms will be the third and fourth locations for Hotworx in the Dallas area.
