Uptown Square, Fayetteville Retail Center, Goes on the Market
With full occupancy and an 11-year projected net operating income growth of 40 percent, Uptown Square offers both stability of income and yield, says Avison Young's John Crotty
FAYETTEVILLE, GA—Avison Young’s Capital Markets Group has been exclusively retained to market and sell Uptown Square, a 100-percent-occupied retail center spanning 72,314 square feet on 8.58 acres at 1415 Highway 85 N in Fayetteville, GA. Anchored by Goodwill, which, in addition to Harbor Freight, recently extended its lease long term, the class A center is directly across from Fayette Pavilion, a 1.5-million-square-foot power center with tenants including Home Depot, Target, Walmart, Kohl’s, and a Cinemark Theater.
Avison Young principals John K. Crotty, CCIM, David Duckworth, Michael T. Fay, senior vice president Theresa Johnson, and senior associate Joshua Ladle will oversee the sale on behalf of the owner, Uptown Sq. 1 LLC.
“Investors are looking for assets that provide stability of income and yield, and with full occupancy and an 11-year projected net operating income growth of 40 percent, Uptown Square offers both,” says Crotty. “The quality of the asset coupled with our strategic collaboration across markets is expected to attract healthy and diverse attention to the offering.”
According to Avison Young’s first quarter 2018 Atlanta retail market report, Metro Atlanta’s investment sales activity remains robust. The average price per square foot increased 5 percent year-over-year to $166 in the first quarter, and cap rates saw an average of seven percent. Tenant demand for retail space demonstrated by 20 consecutive quarters of positive absorption continues to draw investor interest.
“More than half of Uptown Square’s current tenants have been at the property for five years or longer, indicating solid retention,” says Johnson. “At the same time, where some rents are below market, the premier location of the asset allows a new buyer to replace outgoing tenants in the future at a profit easily.”
Uptown Square has a diverse tenant mix of national and local retailers including Sprint, The UPS Store, and Republic Finance. Just two miles from Georgia State Route 54 situated in a high traffic location with strong demographics, the center is near world-class colleges and universities such as Georgia Tech, Emory University, and Georgia State University. Although the asset is less than 20 years old, capital improvements completed recently include parking lot upgrades, exterior repainting, an HVAC replacement, and new roof installation.