Helen Putterman, president of Cohen & Co. Inc. cannot disclose a price to GlobeSt.com, but put the cap rate at 8.5%. Putterman also noted that the seller was a long time owner.
The portfolio consists of five centers, totaling 700,000 sf. They are located in the county seats in their respective markets and are viewed to have tremendous upside. The upside value has been determined by multiple under market leases, vacancies, and development possibilities.
The centers, although in secondary and tertiary markets, are in prime locations in each of their respective markets. They are in close proximity to each other thereby offering an economy of scale in terms of management and leasing.
GlobeSt.com learns that the five properties are the following; Crestwood Station in Crestwood, KY composed of 113,475 sf; Tri-County Square in Corbin, KY composed of 141,315 sf; Manchester Square in Manchester, KY composed of 178,859 sf; Sheperdsville Square in Shepherdsville, KY composed of 133,393 sf; and Greenbrier Valley Mall, located in Fairlea/Lewisburg, WV composed of 85,941 sf.
The properties, dating back to the mid '80s, have had little renovation and improvement creating a more challenging sale of the portfolio. "We showed the buyer that the numerous short term leases and month to month tenants represented incredible upside," Cohen & Co. notes. "The buyer recognized this value, and the purchasing value of the centers at well below the replacement costs. They felt that with the implementation of an intensive leasing and management program they could substantially increase the value of the properties."
According to a release, the brokers, Helen Putterman, President and Ric Kaiser, senior executive director, were fortunate to identify the buyer prior to marketing the portfolio. "The buyer was determined to move quickly in order to keep it from going out to the market and made a pre-emptive offer to purchase the properties," according to the release. "The deal closed and it was considered a success by all parties."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
