(For more retail coverage, click GlobeSt.com/RETAIL.)
COLUMBIA, SC-East Forest Plaza, a 198,239-sf retail center here, has changed hands in a $27.47-million deal. Marcus & Millichap brokered the deal between the seller, Hauck Co. Ltd, and the buyer, the Rocco Family Trust.
Located at 5420 Forest Dr., East Forest Plaza comprises four buildings spread over 15 acres. The center's tenant roster includes Cingular, Check N' Go, Hobby Lobby, Gamestop, Radio Shack, Payless Shoe Source and Quizno's, among others. "The property is 200,000-sf sandwiched between a Sam's Club and Wal-Mart Supercenter," John Riser, senior director in the Indianapolis office of Marcus & Millichap's National Retail Group, tells GlobeSt.com. "It is stabilized because of its proximity to Sam's Club and Wal-Mart."
He adds 14 leases will come up for renewal in 2010; however, the leases are for small spaces and no anchor tenants are scheduled for renewal for some time.
With John Leonard, regional manager in the Greenville office of Marcus & Millichap, Riser repped the seller. Stewart Weston, senior investment associate in the Long Beach, CA office, repped the seller.
Riser explains that the Hauck Co. decided to sell the property to capitalize on current market conditions. The center, he tells GlobeSt.com, traded at a 7.15% cap rate."The seller was the developer of the project and decided to capitalize on low cap rates and redeploy the funds in other properties."
He adds East Forest Plaza was a "tricky deal to bring to the table because the buyer had to assume three non-course conduit loans."
"Eighty-nine percent of this four-building asset is occupied by national or regional tenants," says Weston in a statement. "Currently 100% leased, this 15-acre property features class A construction, excellent visibility along a major regional thoroughfare and is shadow-anchored by a Wal-Mart Supercenter and Sam's Club. In addition, the Columbia metropolitan area is experiencing rapid population growth."
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