"In this case, we found that the tenants there were happy in that sales were rebounding and sales tax was well above what it was a year prior to Katrina," Dave Wik, acquisitions director for the Cincinnati-based buyer, says about the property at 3100 Bienville Blvd. "Everyone's seen a large rebound in that area." The purchase price could not be obtained by press time.
Built in 1990, the center was sold by a major institutional owner on the East Coast represented by Doug Molyneaux of Grubb & Ellis Sawyer Commercial in Gulfport, MS. The center was 78% leased at sale time.
Wik tells GlobeSt.com that the FEMA has a 30,000-sf lease set to expire in September. "We'll take it back when FEMA doesn't need it any more," he adds. "We've talked to a couple of retailers who are interested in being there."
Other tenants in the center include anchor Sav-A-Center Food Market & Pharmacy as well as Aaron's Rents Inc., Subway Restaurant and H&R Block. Midland Atlantic plans to upgrade the center and develop two pad sites, one for a 15,000-sf tenant and another in the 5,000-sf bracket. Wiks says additional upside potential will be gleaned in the lease rates, which are 10% below market rate.
Wik says Midland Atlantic is looking for additional value-add opportunities mainly in the Midwest and Southeast. While he can't pin a hold time to Parkside Square, he says it's often a three- to five-year turnaround time. "As a company, our acquisition strategy is to buy shopping centers in markets that look like they're growing or rebounding," he says.
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