ATLANTA-RCG Ventures has acquired a 100,000-square-foot class C shopping center called Shannon Square from Beachwood, Ohio-based Developers Diversified Realty Corp. Financial terms of the deal were undisclosed.
Jones Lang LaSalle managing directors Kris Cooper and Margaret Caldwell, along with associate Christie Hawver, represented the seller. RCG Ventures was not available to comment on the sale of Shannon Square, which is located along Jonesboro Road/Highway 138 in Union City, just south of Atlanta’s central business district.
“This was not a distressed deal,” Cooper tells GlobeSt.com. “But it’s not a Class A deal, either. This is your run-of-the-mill class C product—not the kind of product that’s been en vogue during the past couple of years. There’s nothing sexy about the product or its location. There’s no big anchor and no grocery story. There’s no sizzle.”
Shannon Square is anchored by Citi Trends, Dollar Tree and Farmer’s Home Furniture and shadow anchored by Unclaimed Freight. The vacancy rate is only about 20%, compared to about 12 percent in the greater Atlanta market, according to Marcus & Millichap’s second quarter Atlanta retail report.
Multi-tenant transaction velocity gained momentum in early 2010 after nearly coming to a screeching halt last year. Most year-to-date activity has involved small strip center properties. Shannon Square fits into that profile.
“There is a lot of marginal product out there,” Fain Hicks, senior vice president at NAI Brannen Goddard in Atlanta, tells GlobeSt.com. “Properties in more challenging locations with more challenging rent rolls become a price-per-square foot buy. The buyers who are most capable of handling those types of properties are in tune with what rents can be achieved.”
Although the sale price of Shannon Square is undisclosed, Cooper says RCG Ventures is known for acquiring class B and class C retail properties. As Cooper sees it, RCG can add value to the property because the company understands B and C tenants and how to deal with older properties. “Shannon Square is right up their alley,” Cooper says. “We just haven’t seen much of this product type in the local market.”
RCG has been snapping up retail centers across the southeast all year, including the Northside Plaza in Henderson, N.C., Lakeshore Crossing in Gainesville, Ga., Tiffany Square in Rocky Mount, N.C., and Hampton Plaza in Clarksville, Tenn. RCG continues to expand its portfolio of properties totaling more than 4 million square feet and is on pace to acquire $75 million worth of value-added assets in 2010.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
