CBRE Sells 32 Retail Centers for $240 Mil in Last 18 Months
GlobeSt.com; New York; Nov 8, 2001; Roxanna Guilford-Blake

Abstract:
ATLANTA-The Southeast and Mid-Atlantic properties totaled 3.2 million sf and sold for an average $75 per sf. Buyers in Florida, Georgia (Atlanta), the Carolinas and Virginia were the major players. Shopping center REITs show a year-to-date return of 20.49%.

Full Text:
(Copyright (c) 2001 by GlobeSt.com LLC)

ATLANTA-CB Richard Ellis Inc.'s retail investment advisors group has sold 32 shopping centers totaling 3.2 million sf for $240 million ($75 per sf) in the last 18 months in the Southeast and Mid-Atlantic, the company reports.

CBRE has another 30 centers valued at $230 million ready for closing by year end. Buyers in Florida, Georgia (mainly Atlanta), the Carolinas and Virginia were the major players at a time when shopping center REITs are showing a year-to-date return of 20.49%.

The selling pool comprised institutional, 38%; private investors, 38%; larger private investment groups, 19%; and developers, 6%;

The buyers' profile showed 1031 Exchange buyers, 35%; private individual investors, 35%; private investment groups, 19%; retailers/users, 6.5%; and offshore investors, 3%.

The sold properties were made up 20 neighborhood and community centers; one power center; four unanchored strip centers; three enclosed malls; three freestanding retail assets; and one retail land deal. Seven of the deals closed in the last six weeks.

Buyers, lenders and retailers remain active but are "more selective and continuing to be conservative in their underwriting," Lynn Leonard of CBRE's retail investment team says in a prepared statement. "The smaller retail assets ($15 million) are more liquid in today's market due to a wider buyer pool (better size for the 1031 buyer), smaller required equity and less multi-anchor issues."

Leonard says 1031 Exchange buyers and non-traditional/emerging buyers who live within a 400-mile radius of the properties, are among the highest bidders. She advises colleagues eager to find buyer prospects to stay in close touch with local business owners, bankers, lawyers, CPAs and appraisers who "often are the ultimate buyer or have access to the ultimate buyer."

Among CBRE's recent regional transactions were Cherokee Commons, 103,736 sf, Acworth, GA (Kroger); Old Alabama Square, 88,915, Alpharetta, GA (Fresh Market); Wesmark Plaza, 215,200 sf, Sumter, SC (Staples, Goody's); Lexington Parkway Plaza (buyer rep), 210,150 sf, Lexington, NC (Wal-Mart, Belk, Goody's, Ingles); and Cookeville Plaza, 107,649 sf, Cookeville, TN (Office Max, Goodwill Superstore).