Transaction marks in excess of $90 million of grocery-anchored centers sold by Faris Lee in 30 days.
April 29, 2015, Irvine, CA — Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $46.1 million sale of Bluegrass Manor Shopping Center, a high-profile, grocery-anchored center with a tenant lineup including Whole Foods, Toys R Us, and LA Fitness in St. Matthews, KY. The center is located in the strongest retail area of the greater Louisville market.
Rick Chichester, president and CEO, and Donald MacLellan, senior managing partner, with Faris Lee Investments represented the seller, P&P, as well as the buyer, a partnership led by a local operating partner, The Hocker Group. The property closed at a cap rate of 6.65 percent, exceeding market expectations for a leasehold interest in an anchored center in Kentucky.
“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,” said Chichester. “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.”
MacLellan noted that Whole Foods is currently the only one in Louisville, which draws customers from a larger radius and has experienced tremendous store sales with strong annual growth.
“Ultimately, Faris Lee garnered several strong offers on Bluegrass Manor from a diverse mix of investors including institutional owners, REITs, and private investors,” said MacLellan. “We exceeded the seller’s expectation for pricing and identified an experienced local operator who realized the current value as well as potential future value to be realized.”
This is the third grocery-anchored retail center transaction Faris Lee Investments has completed over the last 30 days. The other two sales include the $29.35 million sale of Rosedale Village, a 222,000-square-foot community center located in Bakersfield, Calif., and the $15,075,000 sale of Payson Village Center in Payson, Ariz.
About Faris Lee Investments: Faris Lee Investments is a leading retail advisory and investment sales firm. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee’s senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.