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RICHMOND, VA—The Shops at Railey Hill has traded for slightly more than $3 million. Silver Spruce LLC acquired the 14,528-sf strip mall as an investment from Hunter Holdings LCC. The mall, which is located at 115 Heaths Way Rd. in Chesterfield County, is 92% occupied by smaller local tenants such as Huntington Learning Center and Curves.
The mall is located in an active retail area, according to Eric Robison of Thalhimer's Investment Brokerage Group. "The West end of Midlothian Turnpike and Woolridge Road (where the asset is located) is still benefiting from strong growth around the 288 corridor."
Robison and L. Birck Turnbull also with Thalhimer's Investment Brokerage Group represented the buyers. Robison says that strip malls are becoming a favored investment for private investors and 1031 exchanges because of the triple net structure of the leases, which are suited for passive investors.
Comparable sales include a $2.7 million trade of a 8,120-sf strip mall on Broad Street, consisting of two tenants, Hollywood Video and Einstein Bagel. That mall was acquired by a private investor from Washington DC, Robinson says. In Virginia Beach a 7,000-sf mall sold for $2.4 million. It was 100% leased and acquired as part of a 1031 exchange.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
