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Walmart Market Sells at 4.68% Cap Rate

ATLANTA—A Walmart Neighborhood Market in Columbus, GA just traded hands. The sale price: $2.39 million. Walmart Neighborhood Market signed a 20-year…

By Jennifer LeClaire | jenniferleclaire | | Updated on February 11, 2016
Walmart Neighborhood Market Walmart Neighborhood Market
ATLANTA—A Walmart Neighborhood Market in Columbus, GA just traded hands. The sale price: $2.39 million. Walmart Neighborhood Market signed a 20-year corporate guaranteed triple-net lease ground lease on the property with 16 five-year options, each with rent increases. The retail property spans 41,117 square feet. Don McMinn and Zach Taylor , vice president of investments in Marcus & Millichap ‘s Atlanta office represented the seller. The seller is the original developer of the retail asset. “We received strong interest due to the size of the Columbus market and lower price point which generated over six offers,” says McMinn . “We eventually closed with a private 1031 buyer at 98% of the list price and 4.68% cap rate, which is one of the lowest cap rates for a Walmart Neighborhood Market to date.” Built in 2014, this freestanding Walmart Neighborhood Market opened in 2015 and is located at 928 Manchester Expressway. The retail property sits next to 10,500 square feet of shops and features a drive-through pharmacy and a six-pump fuel station. “Our team has sold four Walmarts in the last 18 months and we have three more listedone in in Augusta, Georgia, another in Orangeburg, South Carolina and one in Greenville, South Carolina,” McMinn says. “We just listed a fourth in Myrtle Beach, South Carolina.” GlobeSt.com caught up a Franklin Street to get some additional perspective. We asked Bryan Belk, senior director of retail investment sales for some thoughts. “Buyers are investing in smaller markets to get yield as pricing in primary markets continues to rise,” Belk tells GlobeSt.com. “Many great value-add opportunities lie in suburbs of major markets where stores have closed and active tenants like Walmart Neighborhood Market, Hobby Lobby, Academy Sports, et cetera, can backfill retail spaces with strong credit and immediate create value to a center.” Do more retailers want in-town locations? One market watcher says so. Find out why in my recent column .

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