ATLANTA-Walmart didn’t always build its own stores—and a prime leased location in an Atlanta suburb just traded hands with eight years left on the term. A private REIT snapped up a 352,073-square-foot Walmart and Sam’s Club for $32.8 million, or $93 per square foot.

Craig Johnson, an associate vice president in Marcus & Millichap’s Atlanta office, represented the seller, a California-based investor. Johnson also found the all-cash buyer, a private REIT. The properties are located in Douglasville, about 20 miles west of Atlanta.

“The debt was coming due on both properties and the seller was evaluating refinancing the deal, but today’s environment changed significantly since they put original debt on it,” Johnson tells GlobeSt.com. “Because of the LTV ratio the seller was going to have to come out of pocket $3 million or $4 million to refinance the property. Even though the seller was in a position to put money into the deal, the desire was to pull money out.”

Johnson says the seller gave him a 30-day window to find a buyer and close. With a few potential buyers in mind, he listed it and received two offers on the first day. From listing to closing was 45 days.

The Walmart Supercenter and Sam’s Club buildings were constructed in 1999. The base triple-net lease term runs through November 2019 and contains six five-year options.

“With about eight years left on the lease, some investors would have viewed the deal as a risk but the buyer recognized that it was a strong location,” Johnson says. “The fact that there is a Sam’s right next to the Walmart indicates that Walmart is committed to that location.”

The Douglasville Walmart Supercenter and Sam’s Club are located at 7001 Concourse Pkwy. The 1.2 million-square foot Arbor Place regional mall and many national retailers are directly across from the property on Interstate 20 in the largest retail corridor just west of Atlanta.

The population of Douglasville has grown 37% since 2000, which is almost twice Georgia’s overall growth rate. Douglasville’s population is expected to increase another 15% during the next five years. The population within five miles of the property is 81,657 and the annual median household income is $58,840.

“Investors seeking steady returns and capital preservation are demonstrating strong interest in top-quality Atlanta net-leased assets,” says Johnson. “There is a tremendous amount of capital looking for investment-grade single-tenant properties. We are receiving strong bids from institutions and large investors who are setting pricing benchmarks.”

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