SAN DIEGO-GlobeSt.com exclusively learns that Alvin Mansour, a senior vice president of investments and senior director of Marcus & Millichap Real Estate Investment Services’ national retail group recently closed 11 transactions at $44 million, demonstrating increased buyer appetite among exchange buyers and private investors.
Mansour represented the sellers in these 11 separate shopping strip center transactions throughout the US. The sellers were developers and family trusts, while the buyers were private investors.
The properties are located in Mississippi, Utah, Texas, Illinois, California, Kentucky and North Carolina. “The strip center segment has presented its share of challenges,” Mansour says, “but it is improving steadily, along with the entire retail sector and lending market. As we continuously expand our already deep access to a pool of investors nationwide, more private buyers will vie for these strip centers—even in secondary and tertiary markets.”
Mansour points out that 1031 exchange buyers are becoming increasingly active in the strip center segment. “We have seen a number of exchange buyers trade non-conventional product, instead of once-common apartment complexes, for strip centers because of their stabilized returns and ease of management,” he says. “An array of unique properties, including ranches, parking lots, and RV parks, are now being traded for strip centers.”
Mansour also explains that the buyer profile has clearly changed. “As competition heats up, cap rates will continue to compress for strip centers, a trend we began to see late last year.”
In Los Angeles, Mansour closed the largest strip center transaction—which totaled $8.8 million—at 4414-4430 York Blvd. The 18,498-square-foot strip center is anchored by CVS, Starbuck’s and L&L Hawaiian Barbecue.
He arranged the sale of Turtle Creek Corner, a 119,334 square-foot retail center in Hattiesburg, MS. The 98% occupied property is triple-net-leased to several national credit tenants including Lowe’s, TJ Maxx, H&R Block and others.
Conn’s and Shops at Alameda in Houston sold at $5 million to a private investor. The property was anchored by Conn’s and featured several regional and local tenants. He negotiated the sale of Riverton Depot, a fully-leased retail center in Riverton, UT. Tenants at the 32,384-square-foot asset include Staples, Dollar Tree and Shoe Carnival. Heights Corner in Forth Worth, TX, a Chick-Fil-A and Starbucks-anchored center, traded at a 7.68% cap at more than $442 per square foot. The Market at Byram, a 69,054-square-foot neighborhood center anchored by Vowell’s Marketplace, sold to a private investor in Byram, MI. Shops at Liberty Plaza in Crystal Lake, IL, a neighborhood center with regional tenants, traded for just north of $302 per square foot. A Starbucks and Jimmy John’s anchored strip center in Louisville, KY, closed at $575 a square foot to a private 1031 exchange buyer based in California.
He also arranged the sale of: an 8,930-square-foot strip center in Cedar Hill, TX, anchored by Verizon Wireless and Sears; Shoppes at Indigo Trails, a 12,500-square-foot retail asset in Queen Creek, AZ; and a 4,930-square-foot strip center in Concord, NC, anchored by T-Mobile.
Providing additional representation on these transactions were Brent E. Yurtkuran, a senior associate in the Jackson, MI, office; Greg A. Moyer, a senior vice president investments in the Chicago office; Richard Bird, regional manager of Marcus & Millichap’s Salt Lake City office; and Allen Smith, a vice president investments in the Charlotte, NC, office.
Mansour has been busy as of late. As GlobeSt.com exclusively reported at the time, he recently negotiated the sale of seven Walgreens located throughout the US since the first quarter, as GlobeSt.com exclusively reported. The properties, located in Virginia, Indiana, Missouri, North Carolina, West Virginia, Mississippi and Texas, traded for approximately $36.4 million.
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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.
