LOUISVILLE—P&P has just sold the Bluegrass Manor Shopping Center, a grocery-anchored development in St. Matthews, KY, part of the Louisville metro area, for $46.1 million to a partnership led by a local operating partner, the Hocker Group.

Grocery-anchored centers have become some of the most desirable retail properties, but this property had special appeal because it features a Whole Foods, currently the only one in Louisville. The property closed at a cap rate of 6.65%, which exceeded market expectations for a leasehold interest in an anchored center in Kentucky, according to officials from Faris Lee Investments, which advised both parties in the transaction.

“Faris Lee marketed the asset as a rare opportunity to acquire a quality grocery-anchored center with high-performing tenant sales in an irreplaceable location,” says Rick Chichester, president and chief executive officer of Irvine, CA-based Faris Lee. “We also marketed the center with some future lift in income based on certain below-market rents, an outparcel with development potential, and at some point in the future the possibility of redevelopment of portions of the property to accommodate higher and better uses.”