SOUTH BEND, IN—Next Realty has just completed the acquisition of a Best Buy net leased retail property in Mishawaka, a suburb of South Bend. The acquisition was on behalf of Next Realty Investment Fund VII. The purchase price was not disclosed.
The 50,000-square-feet property sits at 6502 Grape Rd. along the town's main retail corridor, about 2.5 miles from the University of Notre Dame. Furthermore, University Park Mall, owned by Simon Properties and one of the region's major retail centers, sits directly across the street and draws visitors from a 65-mile radius. Overall retail vacancy within the Mishawaka submarket is only 4.4% with no large retail vacancies, according to Next officials.
“This acquisition is a great opportunity to acquire a well-performing retail asset that essentially is located at “Main and Main” in Mishawaka's primary retail district,” says Eteri Zaslavsky, director of acquisitions for Next Realty.
The building was originally developed for Service Merchandise. It was refurbished 10 years ago and converted into a Best Buy. The tenant has another ten years of term remaining on its lease.
According to Zaslavsky, even though Best Buy stores today are about one-third smaller, this retailer has adapted a store-within-a-store concept and leases space in the facility to tenants such as Google, Verizon and Comcast.
This location is in the top 25% in sales for the retailer, she adds, and it is the only Best Buy store within a 30-mile radius. “We liked the opportunity for a variety of different reasons. This retail strategy to create stores-within-a-store further enhanced the appeal of this investment.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
