ATLANTA-Mabry Village, a 15,126-square-foot shopping center in Roswell, GA, has traded for $5.3 million. At $350 per square foot, the sale is the second highest PSF retail transaction in Atlanta since 2008, according to DataBank.
The Shopping Center Group represented the seller, a undisclosed development company headquartered in Atlanta. Greg Craft of the Trilogy Group represented the buyer, a private investor in Colorado. Additional terms of the deal were not disclosed.
“Retail properties with good real estate fundamentals, strong tenancy and solid demographics continue to be desirable to savvy investors in Atlanta or any other market,” Dan Earles, investment advisor at the Shopping Center Group, tells GlobeSt.com. “Cap rates on core properties have compressed nearly to where they four years ago. This trend may result in non-core properties with good tenants and solid fundamentals looking desirable to investors.”
Mabry Village is located at the intersection of State Road 92 and Mabry Road. The tenant lineup includes Starbucks Coffee, FedEx Office, Five Guys Burgers and Fries, Wireless Zone, an exclusive Verizon Wireless franchisee and Prudential Georgia Realty.
“The strong tenant mix and demographics, along with excellent visibility, contributed to the value of the center,” Earles says. The transaction closed less than 30 days after a contract was signed.
Atlanta’s multi-tenant retail sector continues to churn with deal making, with distressed assets accounting for a considerable portion of recent activity, according to Marcus & Millichap. These properties remain most attractive to value-add, predominately all-cash buyers due to prices typically well below replacement cost. Grocery-anchored centers, though, set pricing benchmarks and receive strong bids from institutions and large investors. Cap rates for this type of product start at about 7% M&M reports.
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