NKF Capital Markets has announced the sale of two Publix-anchored shopping centers and a fitness-anchored center in Georgia. The three deals are valued at more than $36 million and encompass nearly 200,000 square feet.
According to Newmark Knight Frank Research, the transactions reflect the bullish shopping center market, especially in Atlanta where shopping center inventory has seen significant growth over the past five years, adding 4.5 million square feet of new space. The overall Atlanta shopping center vacancy rate dropped to almost half in over five years, from 9.9 percent at the end of the first-quarter 2013 to 5.7 percent at the end of first-quarter 2018.
“Grocery and fitness-anchored shopping centers remain solid investments, especially for private investors shopping at the $10 to $20 million price point,” said Drew Fleming, NKF Capital Markets senior managing director. “At Paradise Shoppes of Perry, the Publix anchor was the primary attraction for the investor. The center was experiencing tremendous leasing momentum at the time of sale, which is a testament to how well Publix performs at this location.”
Cypress Development sold the 72,200-square-footParadise Shoppes of Perry shopping center for $11.4 million to Flag Wharf, Inc. The center is 96 percent leased to tenants including Publix, Subway, Marco’s Pizza, El Jalisco Grille and T-Mobile. Paradise Shoppes of Perry is located in Perry, Georgia, at 275 Perry Parkway. Fleming and Senior Managing Director Mark Joines, along with Associate Partner Henry Kushner,represented the owner/seller.
In Atlanta, Lakha Properties sold its 46,219-square-foot Publix-anchored shopping center known as Shallowford Exchange for $12.45 million to Shallowford, LLC, an Atlanta-based private investment group. Located at 2558 Shallowford Road, the center is 100 percent leased to Publix, Subway, Marco’s Pizza, UPS Store and MetroPCS. Joines, Fleming and Kushner represented the owner/seller.
“Infill shopping centers like Shallowford Exchange will continue to create value for investors because they are leased to a roster of internet resistant tenants such as hair salons, medical offices, restaurants, dry cleaners and other service providers,” said Joines. “And overall, the grocery store anchors are evolving to offer a modern omnichannel experience for consumers. As one example, we are seeing more amenities like designated parking for shoppers who prefer ‘direct-to-trunk’ grocery delivery services.”
NKF Capital Markets’ third deal took place in Alpharetta, Georgia at 12315 Crabapple Road, when WB Holdings-Silos, LLC purchased The Silos at North Farm Marketplace, a 78,765-square-foot fitness-anchored center, for $12.5 million. The center is 97 percent leased to tenants such as One Life Fitness, Alpine Bakery and Bach to Rock. Joines, Fleming and Kushner represented the buyer.
“The Silos is a perfect example of the growing demand for shopping centers leased to sound gym operators that pull in thousands of patrons per week,” said Joines.
About NKF Capital Markets
NKF Capital Markets, operated by Newmark Group, Inc., is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
