Retail

GNC to Close Up to 900 Stores by End of 2020; Retail Analyst Offers Insight

by Alex Tostado July 25, 2019

PITTSBURGH — The vitamin and health supplement niche of the brick-and-mortar retail market continues to experience intense competitive pressure, observes veteran retail consultant Jeff Green. So it came as no surprise to Green when GNC Holdings Inc. (NYSE: GNC) officials revealed in a second-quarter earnings call earlier this week that it will shutter up to 900 stores in North America by the end of 2020. “It used to be that specialty health supplements were only found in specialty stores such as GNC, Vitamin Shoppe and other regional chains,” says Green, a partner at Phoenix-based Hoffman Strategy Group. “Now you can find the same products sold at traditional supermarkets, specialty food stores and discount department stores.” Citing a decrease in mall traffic over time, Tricia Tolivar, CFO of Pittsburgh-based GNC, said during the earnings call Monday that the company could close up to 500 of its 800 stores that are currently located in malls across the United States and Canada. Ken Martindale, CEO of GNC, added that 28 percent of the company’s stores are situated in malls, while 61 percent are in strip centers. “The negative trends in traffic that we’ve seen in mall stores over the past several years have accelerated …

July 25, 2019

Acquisitions California Restaurant Retail Western

Evergreen Devco Sells Newly Built 2,750 SF Retail Project in Highland, California

by Amy Works July 24, 2019

HIGHLAND, CALIF. — Developer Evergreen Devco has completed the sale of its newly developed retail project, a Jack in the Box restaurant, located at 27734 Base Line St. in Highland. An unnamed buyer acquired the 2,756-square-foot property for an undisclosed price with a signed a lease to a Jack in the Box franchisee. Jimmy Slusher of CBRE represented the developer and seller, Evergreen Devco, in the deal.

July 24, 2019

Acquisitions Illinois Lee & Associates Midwest Retail

Lee & Associates Negotiates $1.2M Sale of Retail Building in Norridge, Illinois

by Kristin Harlow July 24, 2019

NORRIDGE, ILL. — Lee & Associates has negotiated the $1.2 million sale of a 15,000-square-foot retail building in Norridge, about 15 miles northwest of Chicago. The property, partially occupied by Dollar General, is located at 7510 W. Irving Park Road. It also features a showroom. Rick Scardino and John Cassidy of Lee & Associates represented the seller. A private investor purchased the asset.

July 24, 2019

Market Reports Massachusetts Northeast Northeast Market Reports Retail

Demand for Retail Space Surges in Boston

by Taylor Williams July 24, 2019

Bolstered by strong growth in its millennial population and high-paying jobs, Boston’s urban core continues to boast one of the lowest retail vacancy rates in the country. But this trend has also led to a wave of new development that could temper that good news for Boston retail owners. According to data from Marcus & Millichap, metro Boston’s retail vacancy rate is expected to rise by 40 basis points from 3.2 percent to 3.6 percent in 2019, a year in which 1.3 million square feet of new projects are slated for completion. By comparison, the national vacancy rate stood at 10.2 percent at the end of the first quarter, reports Reis. Marcus & Millichap predicts that the uptick in metro Boston’s retail vacancy will slow the pace of annual rent growth to 3.3 percent. Population growth is fueling demand for housing, which in turn spurs demand for retail to serve those new residents. Metro Boston’s population has grown by more than 112,000 people over the last five years, according to Marcus & Millichap, and the area boasts a median household income in excess of $90,000. While the local rate of population growth mirrors that of the United States as a …

July 24, 2019

Acquisitions New Hampshire Northeast Retail

JLL Negotiates Sale of 148,102 SF Shopping Center in Milford, New Hampshire

by Alex Patton July 23, 2019

MILFORD, N.H. — JLL has negotiated the sale of Lordens Plaza, a 148,102-square-foot shopping center in Milford, a small town near Nashua just inside New Hampshire’s southern border. Shaw’s Supermarket anchors the property, which is located at the intersection of State Routes 101 and 101A. Other tenants include Rite Aid and Fresenius Medical Care. Nat Heald and Chris Angelone led the JLL team on behalf of the seller, LNR. Seattle-based Bridge33 Capital was the buyer.

July 23, 2019

Leasing Activity Retail Texas

First Anchor Tenants Open Stores at 275,000 SF Retail Center in Terrell, Texas

by Taylor Williams July 23, 2019

TERRELL, TEXAS — A group of anchor tenants that includes Ross Dress for Less, Hobby Lobby and Five Below have opened their stores at Crossroads at Terrell, a 275,000-square-foot shopping center located about 35 miles east of Dallas. Marshalls, Rack Room Shoes, Ulta Beauty, Petco, and Academy Sports + Outdoors are scheduled to open later this year. Film Alley, an entertainment concept with movies, bowling and arcades, opened at Crossroads at Terrell earlier this year. Future restaurant users at the property will include Olive Garden, Raising Cane’s and Chili’s, which will accompany the likes of Whataburger, Chick-fil-A and Chipotle Mexican Grill. RealtyLink and Oakridge Investments are co-developing the property, and CBRE is leasing it.

July 23, 2019

Acquisitions Retail Texas

Sperry Commercial Brokers Sale of 42,594 SF Shopping Center in Dallas

by Taylor Williams July 23, 2019

DALLAS — Sperry Commercial has brokered the sale of Stemmons Center, a 42,594-square-foot shopping center located at 2629 N. Stemmons Freeway in Dallas. According to LoopNet Inc., the property was built on 4.4 acres in 1979. Calvin Wong and Daniel Eng of Sperry Commercial represented the buyer and the seller, both of which requested anonymity, in the transaction.

July 23, 2019

Acquisitions Retail Texas

MIMCO Acquires 32,000 SF Shopping Center in Austin

by Taylor Williams July 23, 2019

AUSTIN, TEXAS — MIMCO, an El Paso-based retail investment firm, has acquired Four Corners Shopping Center, a 32,000-square-foot retail center located at the intersection of South Congress Street and William Cannon Drive in Austin. Tenants include Austin Regional Clinic, Popeye’s Louisiana Kitchen and Schlotzsky’s Deli. The seller was not disclosed. With this transaction, MIMCO’s Central Texas portfolio now spans more than 2 million square feet of shopping center space.

July 23, 2019

Acquisitions Loans Louisiana Retail Southeast

Uber Capital Provides $33M Acquisition Loan for Mall in Lafayette, Louisiana

by Alex Tostado July 23, 2019

LAFAYETTE, LA. — Uber Capital Group LLC has provided a $33 million acquisition loan for Acadiana Mall in Lafayette. The 15-year loan features a fixed 5.4 percent interest rate, 70 percent loan-to-value and partial recourse for the borrower. Acadiana Mall spans 1.6 million square feet and is situated six miles south of downtown Lafayette. The anchor tenants are Macy’s, Dillard’s and JC Penney. Additional tenants include Aeropostale, Victoria’s Secret, Forever 21, The Children’s Place, Zumiez, Kay Jewelers, Jimmy Jazz, Men’s Wearhouse, Chick-fil-A, Thai Max and T-65 Café restaurants. Namdar Realty Group acquired the mall.

July 23, 2019

Features Florida Net Lease Retail Southeast Southeast Feature Archive

Collaboration is Key for 1031 Buyers to Avoid Missteps, Tax Obligations for Single-Tenant Net-Leased Retail Assets

by John Nelson July 23, 2019

Single-tenant, net-leased properties (STNL) are among the most sought-after investments in the market, and over 40 percent of all STNL properties acquired are purchased by investors in a 1031 exchange. Finding the right properties can be challenging and competitive, and factoring in the time restrictions of a 1031 exchange further complicates the issue, particularly when deals can be derailed for a myriad of reasons. Many of these pitfalls can be avoided or limited by leveraging a team of well-versed experts, from property brokers to tax professionals, reducing the odds of an investor getting shouldered with a hefty tax obligation. An infrequent but potentially catastrophic event that can derail a 1031 exchange is a tenant exercising a right of first refusal (ROFR). Approximately one-in-five leases include such a provision, and most tenants infrequently take advantage of the opportunity. Experienced real estate professionals often know which occupants tend to favor acquiring their buildings when given the opportunity. Corporate-owned McDonald’s restaurants are among the most frequent tenants exercising a ROFR when presented with the chance. Although targeting these deals does not automatically derail a 1031 exchange, having a viable backup property is important in these situations. Other hurdles can derail a flawlessly executed …

July 23, 2019

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