The ownership has entered into a 25-year ground lease with Lowe's Home Centers to build a 130,000-sf Lowe's Home Improvement store on the site. A Levitz furniture store relocated and vacated the property on last October.
Lowe's received all the necessary planning and zoning approvals for the construction of the store. There will be approximately 704 parking spaces. The ground rent is $1.52 million annually with escalations every five years. Lowe's currently has more than 1,250 stores in 49 states.
The seller—identified only a family-owned firm out of Chicago--was represented by its asset manager Acadia Realty Trust. The purchaser was represented by a group consisting of Frank Reilly of New York Urban Real Estate, Ted Gibbons of Investment Realty Advisors Inc. and Mike Garrido of Trident Realty Advisors.
Gibbon says the transaction was a "dream deal. This is a trophy asset in a supply constrained market." He tells GlobeSt.com that the escrow period itself lasted only one day. "This was truly a dream deal from a brokerage perspective."
"This is a good long-term hold for the institutional buyer," adds Garrido. He says Lowe's is "a welcome addition to this neighborhood."
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