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JACKSON, MI-Abrams Industries announced it recently sold Merchants Crossing Shopping Center in Jackson to an undisclosed buyer for $7.4 million. Abrams originally developed the 110,000-sf shopping center in 1972 and re-developed it in 1996 and 2004. Kroger, Big Lots and Family Dollar anchor the center.
"We successfully completed the lease-up of this shopping center in recent months, allowing us to obtain an excellent price from the current favorable real estate markets and realize the value we created," says Alan Abrams, co-chairman, president and CEO of the company.
The Merchants Crossing sale resulted in a pre-tax gain of approximately $4 million and net-cash proceeds of approximately $4.1 million. "We intend to re-deploy the capital created by this development by purchasing an additional income producing property and thereby defer the income taxes otherwise payable on the gain."
In February, Abrams completed the sale of its Manchester Plaza shopping center in Cincinnati, OH for $3.6 million, resulting in a pre-gain of approximately $850,000. The 86,000-sf center generated net-cash proceeds of approximately $3.45 million.
In negotiating the sale prices of both centers, Abrams took into consideration: The shopping centers' historical and anticipated cash flows; tenants and their remaining lease terms; the condition and location of the centers; and current overall market conditions for the real estate industry.
The firm currently owns or controls 800,000 sf of shopping centers in the Midwest and Southeast and 200,000 sf of office properties in metropolitan Atlanta, Georgia.
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