(For more retail coverage, click GlobeSt.com/RETAIL.)
LAS VEGAS-An ethnic-retail portfolio builder is the new owner of Sunrise Marketplace, a 188,000-sf grocery-anchored development in the 400 block of Nellis Boulevard, the main north-south thoroughfare on the eastern edge of the city. The sale price was $29.5 million, according to public records.
The seller, Donohue Schriber, acquired the center in 2005 for $17.5 million and invested an undisclosed amount in a repositioning that included a facelift and some remodeling. The center is 98% leased and anchored by Smith's Food & Drug, Falles Paredes, Hollywood Video, Washington Mutual, and Jo-Ann's Fabrics & Crafts.
The new owner is an institutional client of Dallas-based Sarofim Realty Advisors for an ethnic-oriented retail portfolio. Christina Roush of CB Richard Ellis, one of the listing brokers, tells GlobeSt.com the area the center sits in is at least 30% Hispanic.
The sale price equates to a cap rate that is in the mid 6% range, says Roush, adding that cap rates are on the rise. "The lowest cap rate we have been able to achieve on a grocery-anchored center is 6.25%, but the market is trending up now, as much as 50 to 75 basis points," she says. "If interest rates creep up more, we're going to see trades approaching 7%."
Hollywood, which wasn't expected to renew its lease, did so during the sale negotiations, says Roush. "Video stores have been a real question mark, but apparently they do well in that location," she says.
Roush marketed the property with CBRE's Charles Moore. Simon Honeybone and Jeff Chavez handled the acquisition for Sarofim Realty Advisors.
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